KENYA – Leading e-commerce player in Africa, Jumia has opened its logistic arm to third parties both B2C and B2B to enable the company undertake logistic operations efficiently and effectively.
“Businesses across the country are re-examining their costs, especially during COVID-19. For many, logistics is a major cost driver and headache to manage. At the request of our partners, we are opening up our logistics arm for B2B & B2C deliveries with the hope that we can provide a better quality of service, at a lower cost,” said Jumia Kenya CEO, Sam Chappatte.
Jumia’s logistics network which the company uses to support e-commerce & express Jumia Food deliveries, is a collaboration of dozens of logistics entrepreneurs across the country including small players, individuals, firms and big players like POSTA and Wells Fargo with thousands of bikes, vans and hundreds of pick up stations, reports TechMoran.
“This move is good news for these partners as it will drive more volume through our network & to them,” said Chappatte.
The newly introduced services include Next Day delivery to all major cities, Same Day delivery in Nairobi and cash on delivery services at competitive prices.
The program has already been piloted with Chappatte revealing that, “We have piloted this program over the last months, and believe the service is relevant for both medium & large businesses to reach fragmented customers, or for smaller businesses or individuals to do social commerce selling – Instagram, Facebook, etc.”
Clients will have the option of dropping off their parcels at Jumia drop off centres in Nairobi or have the company collect from their locations.
With the introduction of the new service, it has given Jumia an edge over its competitors as e-commerce delivery firms have been on the rise recently.
According to a research by Allied Market Share, global E-commerce logistic market is expected to reach US$535.8m by 2022 supported by a CARG of 21.2%.
Looking at the world food delivery segment in particular, revenue is expected to hit US$18.9 billion in 2020, showing an annual growth rate (CAGR 2020-2024) of 8.2%, resulting in a market volume of US$25.95 billion by 2024, highlights Statista.
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