Twiga Technologies, one of the fastest-growing startup companies in Africa, recently announced that it is making changes to its business model in order to stay competitive. The company, which focuses on providing digital sharing and delivery services across Africa, has laid off 33% of its staff and is … transitioning to an external logistics marketplace.
Twiga Technologies CEO, Hartman Harrison, said the change was necessary to keep the business profitable in the long run despite difficult economic conditions caused by the pandemic. He explained, “The last few months have been incredibly tough for the Twiga team and the African startup ecosystem as a whole. We’ve had to make some difficult decisions to ensure our business remains competitive and sustainable.”
Twiga Technologies was founded in 2014 and, until recently, provided a wide range of digital sharing and delivery services. Its in-house delivery system was one of the most revolutionary components of its business model, allowing users to order items online and have them delivered directly to their door.
However, the company is now transitioning away from in-house delivery and towards an external logistics marketplace. This means that, instead of relying on its own delivery staff, it will partner with third-party delivery providers who are already offering their services across Africa.
The result of this transition is that Twiga Technologies has had to lay off 33% of its staff, with the most affected area being its in-house delivery personnel. Hartman Harrison stated, “We are saddened to let go of a portion of our wonderful and talented team, but this difficult decision is necessary for us to continue to serve our customers in the most efficient and cost-effective way.”
The move to an external logistics marketplace is expected to enable Twiga Technologies to lower its costs and open up opportunities for collaboration and partnerships. It should also allow the company to continue providing efficient services to its customers without compromising on customer satisfaction.
The changes implemented by Twiga Technologies reflect just how much the African startup ecosystem is challenged by the economic realities of the pandemic. These hard decisions demonstrate the importance of staying up-to-date with market trends and being able to quickly adapt to changing conditions.
