• Friday, May 24, 2024
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Cost cutting: Jumia to only operate one warehouse in Lagos,

Cost cutting: Jumia to only operate one warehouse in Lagos,

Jumia Technologies has said that it will merge all of its three warehouses into a singular 30,000 sqm depot in Lagos to improve profit in Nigeria and streamline its operational footprint.

Francis Dufay, chief executive officer of Jumia Technologies, revealed this in an interview with Bloomberg. He noted that this move is part of the company’s effort to cut costs and achieve optimal profitability.

“We want to be sized and organised for significant growth,” Dufay said. “Jumia sees the macro situation in Nigeria as temporary, and expects it to turn positive in the medium term.”

Jumia recently announced that it reduced its operating loss to $8.33 million in the first quarter of the year while growing its revenue to $48.9 million.

Meanwhile, Jumia has partnered with Newedge (Easybuy), a finance firm, to offer consumers a convenient way to shop online. According to the firm, this addition will allow consumers in Nigeria to buy their desired products and make flexible payments over a set period.

Sunil Natraj, CEO of Jumia Nigeria, said, “Partnering with Easybuy to provide our consumers with a much-needed Buy Now, Pay Later solution is a win-win for everyone. We understand the importance of offering flexible payment options, especially in this challenging economic environment.

“This partnership is a testament to our commitment to empowering our consumers and providing them with the tools they need to shop conveniently. We are confident that EasyBuy’s BNPL solution will be a valuable addition to our platform and contribute significantly to the growth of e-commerce in Nigeria.”