Opay announced this afternoon 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, as seen by Nairametrics, primarily blamed the development on
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, its 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. Part of the statement said:
“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.