Fast-paced commerce startup Airlift has announced the closure of its operations in South Africa as well as some cities in Pakistan as the global capital crunch ravages startups.
“In light of the significant downturn in global financial markets, Airlift is undertaking a strategic realignment to reduce the surface area of operations and focus more on key areas that drive sustainability and profitability. As part of efforts to reduce acreage, Airlift is withdrawing from select markets including Faisalabad, Gujranwala, Sialkot, Peshawar, Hyderabad, Johannesburg, Cape Town and Pretoria. Airlift said in a statement.
“In addition, the company is relocating 8-10 dark stores to our largest markets (Lahore, Karachi and Islamabad), which account for nearly 90% of our revenue,” Airlift said in a statement. “The above efforts are part of Airlift’s strategy to focus on building scale and profitability in large-scale, order-dense markets,” the statement added.
Additionally, Airlift is also reducing its workforce by 31% across all markets and limiting the number of categories on the platform. “The decision to part ways with talented teammates has been incredibly difficult for the company. For impacted teammates, Airlift is committed to providing financial and job placement support to help find new roles.
These decisions, Airlift said, are an important step towards Airlift’s long-term vision of enabling empowerment and leveraging technology to deliver customer-centric solutions. “By reducing the scope of our operations, Airlift seeks to achieve greater depth in key areas and deliver greater value to customers in our largest markets,” Airlift said.