Jumia becomes smaller as Jumia Travel is said to be taken over by Travelstart

by | Dec 9, 2019

Just a few weeks after closing its eCommerce businesses in Tanzania and Cameroon, and laying off staff in Kenya, Jumia might be selling one of its subsidiaries, Jumia Travel.

Although it remains unclear if this is a merger or acquisition, by the close of work on Monday, Jumia Travel’s website will redirect to Travelstart’s.

Founded in 2013 as Jovago, the startup rebranded to Jumia Travel in 2016. Its operations will now be handled by Travelstart, the online flight-booking platform with presence in Nigeria and South Africa.

According to reports, business operations of the 6-year-old company like revenue management, customer service, and corporate sales will now be carried out by Travelstart.

jumia food

A Jumia Food dispatch rider

In what has been a roller-coaster ride for the parent company six months after going public, reports from The New Times of Rwanda have it that one of the eCommerce giant’s subsidiaries, Jumia Food, will halt operations in the East African country next month.

Suggested Read: How Jumia lost its unicorn status, shedding $2.6bn market cap in 6 months

“We regret to inform you that Jumia will suspend our on-demand delivery operations in Rwanda on January 9th 2020,” Jumia said in a message to its Rwandan customers.

With the company losing millions of dollars, it is quite clear that Jumia is struggling to manage operations in Africa’s fragmented market. However, it has made efforts to cut these losses by betting big on Jumia Pay, one of its spin-offs.

Endlessly amused by technology. @ulonnaya

Techpoint Build 2021 is here! Be part of the largest gathering of innovators, startup founders, thinkers, programmers, policymakers, and investors in West Africa. Register free now.

Notify of
Inline Feedbacks
View all comments

Recent News

5 ways to support Techpoint Africa

5 ways to support Techpoint Africa

If you value the work we do at Techpoint Africa and would like to help ensure that the core of our journalism remains free and independent, please consider these 5 ways to support us

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Crypto Explorer

A monthly series featuring in-depth analysis on the cryptocurrency sector in Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap