O-Ride bows out

OPay has announced plans to shut down some of its business units including its ride-hailing; ORide, OCar, and logistics, OExpress services, to focus more on financial and technology services in Nigeria. According to the firm Thursday, the decision is as a result of harsh business conditions caused by the COVID-19 pandemic, the lockdown, and the Lagos state ban on motorcycles. The Lagos state government had in February this year imposed a ban on motorcycle and tricycle operations, though the ban did not include delivery services in key commercial and residential areas within the state. The firm said the ride-hailing units are not a major part of its business units adding that it has been “investing more and seeing accelerated growth in its commitment to Nigeria’s financial and technology inclusion”. The firm said during the pandemic it recorded a huge demand for its offline mobile money agency, and online digital payment, which remains the core of its business. From January to April 2020 for example, it witnessed a 44 percent growth of offline and online transaction value even in the midst of pandemic and lockdown. OPay expressed hopes that the fintech part of its business coupled with the goods’ platform will form the future of Nigeria’s technology development.

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