Opay yesterday, June 2nd, 2020, announced that it would be shutting down some of its business units (for now) to focus only on financial technology services.
A press statement by the company primarily blamed the development of the COVID-19 pandemic, as well as a recent regulation by the Lagos State Government which banned commercial motorcycles across much of the Lagos metropolitan area.
The business units that have been put on hold by the company include all its ride-hailing platforms (ORide and OCar), as well as OExpress, it’s delivery business.
Opay also noted that ride-hailing companies around the world have particularly been hit hard by the pandemic which caused rippling economic effects across the world.
The company said it foresaw the negative impacts of the pandemic and had already begun restructuring long before now.
According to the statement by the company, this final restructuring is expected to have a very minimal impact on its business as a whole.
“We can confirm that some of our business units including the ride-hailing services ORide, OCar as well as our logistics service OExpress will be put on pause. This is largely due to the harsh business conditions which have affected many Nigerian companies, including ours, during this COVID-19 pandemic, the lockdown, and government ban.
“Globally, ride-sharing businesses have been heavily impacted by the pandemic. But several months ago, foreseeing this issue, OPay had already taken pre-emptive steps to restructure our business focus away from rides. It is worthy to note that this final restructuring has minimal impact on OPay as a whole business.”
It is important to clarify that ride-sharing had always been only one part, and not a major part of Opay’s diversified business in Nigeria, I fact, Opay had been investing more and seeing accelerated growth in its commitment to Nigeria’s financial and technology inclusion,” the company explained.