By Dipo Olowookere

Nearly a year after facing some financial challenges, which led to a mass layoffs of hundreds of its employees, Dealdey has closed its operations in Nigeria.

Dealdey, Nigeria’s only daily deals website, was established by Mr Sim Shagaya in 2011, but left a year later to start Konga, which has now been sold to Zenox.

In 2016, Ringier, which operates PulseNG, acquired Dealdey with the hope of revitalising the firm for better returns.

However, that dream seems to have crumbled now because the company is shutting down its services in Nigeria.

While the company did not provide information nor issue a formal statement as to why it closed down, there were obvious signs that its business model could no longer push withstand the market.

At the moment, the e-commerce space is mainly dominated by Jumia and Konga, with other struggling to survive the harsh environment in the country.

In 2016, Nigeria, the largest economy in Africa, slipped into recession, but came out a year later. The economy is still recovering from the 2016 crisis it plunged into.

Several companies have found it difficult to stay in business since 2016.

https://businesspost.ng/2019/01/13/dealdey-shuts-down-operations-in-nigeria/

I foresaw this clearly, they simply refused to think outside the box. Dealdey could have easily taken advantage of untapped markets(yes they are plenty) there are so many markets that even Jumia and Konga haven't reached but since they didn't pay ME lemme do PHEEEMMMM!!

soberdrunk:
I foresaw this clearly, they simply refused to think outside the box. Dealdey could have easily taken advantage of untapped markets(yes they are plenty) there are so many markets that even Jumia and Konga haven't reached but since they didn't pay ME lemme do PHEEEMMMM!!

lol, could you give and example, just one, of an untapped market they could have considered? ecommerce is not for the faint hearted. Only jumia will survive it.

I have my doubts about the sustainability and viability of e-commerce business in Nigeria. The business model of e-commerce in Nigeria is not feasible. OLX, Deal dey, furniture.ng, etc all shut down in Nigeria. Even market leaders such and konga are not yet profitable too.

The fact is Nigeria is still a traditional economy where over 80℅ of the citizens prefer to shop offline.

edoman2016:
I have my doubts about the sustainability and viability of e-commerce business in Nigeria. The business model of e-commerce in Nigeria is not feasible. OLX, Deal dey, furniture.ng, etc all shut down in Nigeria. Even market leaders such and konga are not yet profitable too.

The fact is Nigeria is still a traditional economy where over 80℅ of the citizens prefer to shop offline.

It is no doubt but Jumia is doing the right things. I tell you. They will be the only one left at the end of the day..

soberdrunk:
I foresaw this clearly, they simply refused to think outside the box. Dealdey could have easily taken advantage of untapped markets(yes they are plenty) there are so many markets that even Jumia and Konga haven't reached but since they didn't pay ME lemme do PHEEEMMMM!!

Baby, I pleaded with them by phone and email to tell me how Dealdey works as per how I can sell on their platform.
They left my email unattended while, during my calls with them,they were speaking the oyibo that they were sure I will never understand!

If not that God say we should not laugh at people when they are down ehn....

boyjo:


Baby, I pleaded with them by phone and email to tell me how Dealdey works as per how I can sell on their platform.
They left my email unattended while, during my calls with them,they were speaking the oyibo that they were sure I will never understand!

If not that God say we should not laugh at people when they are down ehn....

I for one will certainly miss Dealdey . They enabled me do dental treatments at world class private facilities at 'awoof' prices instead of having to carry mat to queue for the whole day at general hospitals at that same price and otherwise fairly expensive services like body massages at giveaway costs at some good spas.

Omofranca:



I for one will certainly miss Dealdey . They enabled me do dental treatments at world class private facilities at 'awoof' prices instead of having to carry mat to queue for the whole day at general hospitals at that same price and otherwise fairly expensive services like body massages at giveaway costs at some good spas.

*Former Dealday staff spotted



Chai! Dealdey show me pepper! That`s all I remember of them.
Partiality ruined them sha

I'm not sure the basic business idea was fundamentally flawed. Most likely the implementation of it. Maybe the business model had a gaping hole that wasn't fixed.

Then again Sim Shagaya is too much of a dreamer and visionary, paying too little attention to the wicked devil in the details. He failed with Konga and Dealday. He needs to go on al ong vacation of introspection and re-tune his perspective.