While Kenyans are still reeling from the collapse of one e-commerce firms known as Appliances Kenya with millions of their monies, Jumia is also teetering on the brink of collapse.
Jumia, a New York Security Exchange (NYSE) company has shut down operations in three African countries namely Cameroon, Tanzania and Rwanda.
The firm which was touted as the great African Startup has had a lot of problems making its operations loss-making.
The firm, while closing its operations in Cameroon stated that, ‘unfavourable conditions on its path to achieving success’, had made it decide to ‘focus their operations in other markets’.
After the registration at NYSE, Jumia stock tanked thanks to a damning Citron Research report which stated that they had failed to state that 41% of their orders were either returned, not delivered or cancelled. This led them to be slapped with a class-action lawsuit over the IPO.
Jumia has been running some promotions in Kenya which end up backfiring on the company with clients complaining that the promotions are scams with products ending up being ‘sold out’ a few seconds after their launch.
It was reported last week that the firm intends to fire over 30 per cent of its Kenyan staff.
It is better that Jumia doesn’t store clients money in its systems but still, the problem is that some people might still lose money when it goes belly up very soon.