Nigeria's local classified
ads site OLX.COM may be axed as Naspers/MIH Africa might soon close down
its African classifieds operations and turn its focus on e-tail sites
and other developed markets. This possible exit comes on the heels of the news that MIH Africa CEO Bill Paladino had left the firm. Bill Paladino former MIH Africa CEO confirmed his departure from the firm on Wednesday, “As
I am no longer with MIH/Naspers Africa, I cannot answer these
questions. As for my future, I am still sorting it out. Not much to
report on that front,” Interestingly MIH Africa recently shut down a number of e-commerce sites to focus on the general e-tail businesses such as Kalahari.com, indicating a likely shut down of Nasper's MIH Africa operations. Naspers will therefore exit from classifieds in Africa and absorb and run e-commerce sites Konga in Nigeria and Kalahari in South Africa. SEE MORE AFTER CUT>>>>>
Paladino
was the CEO of e-commerce in Africa at Naspers subsidiary MIH Internet
Africa since January 2012 and was responsible for South Africa’s
Kalahari.com, Nigeria’s Konga.com and OLX and the recently closed
SA-focused e-commerce start-ups Sacamera, 5rooms, Kinderelo and Style36. And his departure raises questions on the future of Olx.
"Our sources allege that OLX has been given one more year to prove itself in Africa, but in the total absence of any business model other than pay per click the firm will hardly succeed given Africa’s immature pay per click,"
Low CPC rates, largely due to low internet access make the African market "too early" for CPC which makes OLX Africa’s business model highly unsustainable.
The
classifieds market will still be fiercely contested as companies like
Ringier’s Kiramu set to take on OLX for the classifieds market.
Naspers/MIH
Africa is a leading multinational group of media and e-commerce
platforms and its exit, if it happens, will leave a huge gap in Africa’s
classifieds market where it plays a huge role.
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