A man walks past shelves with branded packets at a warehouse for an online store, Jumia in Ikeja district, in Nigeria’s commercial capital Lagos June 10, 2016.REUTERS/Akintunde Akinleye
JOHANNESBURG (Reuters) – Online retailer Jumia Technologies, dubbed “the Amazon of Africa,” said on Thursday it had shut its e-commerce business in Tanzania in a review of its portfolio.
Jumia, which has seen its share price plummet since a Wall Street debut in April, also suspended its e-commerce business in Cameroon on Nov. 18.
“We have to focus our resources on our other markets. It is more important now than ever to put our focus and resources where they can bring the best value and help us thrive,” the company said in a statement.
With an e-commerce business similar to Amazon’s and a classified portal like Alibaba’s, Jumia sells its own stock and takes a cut of third-party transactions on its website.
But that business model has yet to pay off. Jumia missed revenue estimates for the second time in three quarters, according to results announced this month.
Its Tanzanian e-commerce business ceased on Nov. 27, the statement said. Jumia said it would continue to service vendors and customers via its classifieds business.
Jumia shares were trading at $6.31 on Thursday.
Reporting by Joe Bavier; Editing by Jason Neely and Edmund Blair