Connect with us

Bt Intelligence

30 employees lose jobs as OLX shuts Kenya office

OLX has operated in Kenya for the last seven years and revolutionized e-commerce through its online classifieds that brought together buyers and sellers of used items

Published

on

OLX Kenya management says it will assist affected employees in the transition.

More than 30 employees will lose their jobs when OLX closes its Kenyan offices from March this year. The company revealed today that the current consolidation of its African business will affect 31 Kenyan-based workers, who will be left without jobs.

OLX management says it has put in place a programme to assist employees in managing the situation. “The physical office in Kenya will close but the platform will continue to operate as usual,” OLX Kenya Country Manager Peter Ndang’ui says. “Some 31 members of staff have been impacted and OLX is providing meaningful financial and other forms of support for smooth transition.”

Mr Ndiang’ui says the Africa-wide consolidation, which also affects its Nigerian operation, a a purely business decision, “carefully thought to enable us to continue to provide the best services to our customers in Kenya.”  He says OLX operations would be managed by three hubs internationally.

READ: Insightful interview with KCB CEO Joshua Oigara 

OLX is the leading online classifieds company, and its exit from Kenya sends negative signals for the e-commerce market. The business has not grown fast enough to support a full office in Kenya seven years later, and closing the Kenyan office will help it cut down on operational costs.

Mr Ndiang’ui describes the move as “a difficult but important decision” in Kenya and Nigeria to consolidate operations between some of its offices internationally.

Mr Ndiang’iu said operations of its marketplace platform olx.co.ke will not be affected both in Kenya and Nigeria.

OLX has operated in Kenya for the last seven years during which the company revolutionized e-commerce through its classifieds model that brought together buyers and sellers of used items.

From Dealfish that was launched in 2010 the company rebranded in 2012 to OLX and focused on building critical mass of users. Hundreds of people post or buy stuff on its website daily but are reluctant to pay premium for it. It has lately introduced paid up ads for those who want prominent display on its site but that has yet to catch on.

READ: Kenya’s hope for oil pushed to 2020

OLX has also been facing strong competition from social media platforms, which have provisions for creating groups that become captive audiences to market to.

Facebook, Whatsapp and Instagram have literally turned into free marketing platforms where uses can post products and get buyers almost instantly. This required OLX to create a different model to generate revenues.

Nokia 8 - Share Both sides of the story.

Business Today is the leading independent online business website in Kenya. Started in 2012 by a veteran business journalist, it has a huge following both in Kenya and abroad. It covers various business and related issues. Email editor at: [email protected]

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Education9 hours ago

Oxford launches guidebook for new curriculum

Oxford University Press (OUP) East Africa has, in partnership with teacher trainers, launched a free resource book in preparation for competency-based...

NEWS1 day ago

5 simple tricks Gordon Ogada used to win Sh230m mega jackpot

Gordon Paul Ogada, the guy from Kibera who won the SportPesa Mega Jackpot worth Ksh230,742,881 two weeks ago, is has...

Economy1 day ago

Drivers to pay Sh5,000 for refresher course

NTSA will also subject the drivers to medical tests on conditions that my affect their daily duties in the road

Health1 day ago

Govt partners with Johnson & Johnson on cancer control

The National Cancer Control Strategy 2017-2022 is geared at reducing cancer incidences, morbidity and mortality in Kenya

Disruptors2 days ago

Six-year-old boy creates high-tech computer game

EthanMan app is available for downloads on android play store for kids to read books and play games

NEWS2 days ago

Miguna makes fresh demand on passport

Judge Kimaru said the removal of Miguna Miguna from Kenya on February 6th was illegal and had no merit in...

Economy2 days ago

Citizens to get Sh30,000 bonus as economy grows

Singapore expects an overall budget surplus equivalent to 2.1 percent of its GDP

NEWS2 days ago

Gold worth Sh100 million found at JKIA

The gold is alleged to have been in the custody of a 46-year-old Tanzanian man

NEWS3 days ago

Water crisis hits major towns as rivers dry up

Athi Water Services Board, which manages water resources in various urban areas, notes 75% of Nairobi residents do not get...

Health3 days ago

Ebola scare after a student dies in Keiyo South

County executive says they have already communicated with the ministry of Health headquarters and a sample sent to the Kenya...

Advertisement



Trending