Jumia discontinues its free shipping option

The largest African online retailer, Jumia, has announced the termination of Prime, its free delivery subscription service.

The corporation has adopted a number of measures to reduce costs in the wake of five years of consecutive losses on the New York Stock Exchange, including this one.

Jumia said in a statement that it would concentrate on allocating resources to “key sectors and projects with attractive returns on investments and obvious ecosystem benefits,” according to TechCabal.

Additionally, “de-emphasizing or discontinuing programs and endeavors that do not fit such requirements” will be part of the change.

In addition to ending Jumia Prime, a premium service that provides loyal customers with unlimited free delivery, the business will also stop supplying first-party groceries in a few areas due to subpar unit economics.

By downsizing its Dubai office, the corporation will further reduce its labor costs. Additionally, the senior leadership and decision-making centers will be moved to a site nearer to its African buyers and sellers.

In light of the recent development, Jumia’s management has also undergone a shift.

Following the resignation of the company’s co-founders and co-CEOs Sacha Poignonnec and Jeremy Hodara, Francis Dufay, the former president of Jumia Ivory Coast, has assumed the role of acting CEO.