Jumia has announced the opening of its logistics network to third parties. In other words, its logistics business will no longer only be reserved for suppliers operating through its e-commerce platform. Going forward, any business in need of a last mile delivery service can take advantage of Jumia’s network, technology and expertise.
“Businesses in all countries are re-examining their costs, especially during Covid-19,” said Apoorva Kumar, Jumia’s senior vice president of logistics services. “For many, logistics are a major cost factor and a headache to manage. We have the infrastructure, people, partnerships and technology to help third parties and partners solve logistics and marketing challenges. We believe that we can provide better quality of service at lower cost.”
Here Is What You Need To Know
- The ecommerce company said its new offer has been tested over the past few months with handpicked SMEs and large companies. The results were conclusive enough to push the e-commerce group to offer it in 11 African countries. Jumia’s logistics service is tailored to the continent in a unique way.
- It is based on two pillars: Proprietary technology that aggregates demand and optimizes against supply capacity based on parameters such as quality of service, network accessibility and cost of delivery;
- A network that includes more than 20 warehouses (over 110,000 m²) and more than 1,300 drop-off and collection stations in 11 countries, including in remote areas. In 2019, Jumia processed more than 20 million packages, thanks to the integration of more than 300 logistics partners of all sizes.
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The company’s ecommerce losses have persisted. The company recently stopped its operations in Cameroon, Tanzania and Rwanda. In April 2020, German tech investor Rocket Internet sold its 11% stake in the company. Just last August, it also paid $5 million in settlement of class action lawsuits won by investors in the US who were not satisfied with the company’s IPO documentation.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer