May 9, 2021

Jumia Launches Third-Party Delivery Services To Increase Profits

Jumia
Jumia

Africa’s leading e-commerce platform Jumia has expanded its logistic arm to third-party businesses for delivery services. Jumia was launched in 2012 and was working towards building a logistics service that could enable fast and reliable deliveries across the continent.

The new system aims at meeting customers’ delivery and logistical needs while also efficiently undertaking their logistics operations.

Previously, only businesses that operated in Jumia’s marketplace could use the platform for product distribution. The new expansion allows both Jumia sellers and non-sellers to now use the platform for product distribution.

“Businesses across the countries are re-examining their costs, especially during Covid-19,” said Jumia chief executive officer, Sam Chappatte.

“We have the right infrastructure, people, partnerships, and technology required to help third parties and partners solve logistics and marketing challenges. We believe we can provide a better quality of service at lower costs.”

Jumia’s proprietary technology pillar aggregates demand and matches it with supply capacity on several parameters such as service, reachability of network, and cost of delivery.

“Our technology and last-mile services have a wide coverage that enhances faster turnaround time, reliable handling of products and transparent reporting, all of which have contributed to the success of Jumia, both in urban and rural areas. We are proud to share this technology with a broader set of businesses and give them new opportunities to grow,” Senior Vice President Logistics Services at Jumia, Apoorva Kumar said.

After years of iteration and hard work, Jumia’s logistics arm now consists of a network of over 300 courier partners and proprietary technology for tracking optimal delivery routes, inventory, and payments. It also includes over 110,000 sq. meters of warehouse space across the continent as well as a vast network of drop-off and pick-up stations that offer the company a wider presence.

Jumia also partnered with Total, Vivo Energy, and Posta Kenya to set up pick-up stations to allow for an even wider presence.

The decision to optimize its logistics service as a revenue driver reaffirms that the company is looking beyond e-commerce for income and profits

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