Local food delivery start up to take on space left by Jumia in Rwanda

RWANDA – Following the exit of Jumia, Africa’s largest e-commerce platform in the Rwandan market, a local start-up, CanGo, says it is preparing to embark on fresh operations to fill the void that will have been left in online food delivery a space that is becoming increasingly popular.

CanGo, a local startup that was previously engaged in taxi-hailing service, SafeMotos has started venturing into the food delivery business segment and has indicated its mobile application will soon be available on the App Store and Google Play store.

Barrett Nash, one of the founders of the firm, said, “I’ve been testing our new food delivery system in Kinshasa and for me this is a great opportunity,” he said, referring to Jumia’s announced closure plans in Rwanda.

Jumia, perceived as Africa’s first unicorn, revealed last week that it will suspend its operations in January after it emerged that it was making significant losses in some of the markets where it operates.

Partly, the suspension of its business units is attributed to challenges of digital payments, delivery and logistical infrastructure especially in fragmented markets where it has been operating.

Markets like Rwanda, majority of people still prefer traditional ways of buying goods and services despite the increasing number of smartphones, internet penetration and plummeting data costs, reports New Times.

However, Nash holds that, “there will be no break in on-demand food services in Kigali.”

Currently, CanGo allows customers to make their orders through WhatsApp where they text their order and the restaurant from which they want it delivered from.

Customers believe that is a downside since there are not many options from which they can choose just as much as many don’t see WhatsApp as a genuine way of making their food delivery orders.

Perhaps it is the reason why the firm drove on Jumia’s exit to announce the establishment of a mobile application that will now make it operate as a fully-fledged e-commerce platform.

The firm also delivers groceries and offer courier services.

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