UPS Partners with Jumia to Expand its Logistics in Africa

Apoorva Kumar, SVP Logistics, Jumia

Africa’s first fintech startup, now e-commerce powerhouse Jumia and American shipping and receiving company UPS have announced a new partnership giving UPS access to Jumia’s ‘last mile logistics’ capabilities and infrastructure in efforts to grow its delivery services in Africa.

Leveraging the Jumia infrastructure in Africa, UPS will offer its customers an extended range of delivery solutions, including door to door package delivery and collection, with a variety of payment options.

Apoorva Kumar, SVP Logistics, Jumia
Apoorva Kumar, SVP Logistics, Jumia

 “We are delighted and humbled by the opportunity to partner up with UPS, a global logistics leader, to offer them last mile solutions in Africa. We view this as a validation of the strength of our logistics platform as well as an incentive to double down on our efforts to further enhance our services and build a world-class logistics business in Africa,” said Apoorva Kumar, SVP Logistics, Jumia.

Read also : Jumia Finally Raises $348.6 Million

Jumia and American shipping and receiving company UPS have announced a new partnership giving UPS access to Jumia’s logistics capabilities and infrastructure in efforts to grow its delivery services in Africa.

This partnership will also allow UPS to leverage the extensive network of Jumia drop-off and pick-up stations to expand the UPS reach and coverage across more towns and cities in Africa.

The collaboration will initially cover Kenya, Morocco, Nigeria, with plans for expansion to Egypt, Ghana and Ivory Coast, and thereafter to the remaining African countries where Jumia operates

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“This partnership will help small and medium-sized businesses in Africa that make up 90 per cent of all businesses on the continent and are the backbone of the economy. UPS’s asset-light approach, like the Jumia partnership, offers a pathway for businesses to quickly and reliably connect to new customers around the world through our global network, potentially accelerating their revenue growth,” said Gregory Goba Ble, VP of Engineering and Operations for the Indian subcontinent, the Middle East and Africa, UPS.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Jumia Launches Logistics Service to Third Parties as part of its Repositioning

Africa’s first unicorn, Jumia has embarked on what its management called necessary surgical repositioning  as part of efforts to reposition the e-commerce giant and also become more resilient to changes in the market especially with the plethora of disinvestment trailing the company in recent time. To this end, Jumia said that it is launching a logistics service which will be available for use by third parties.

Senior Vice President Logistics Services at Jumia, Apoorva Kumar
Senior Vice President Logistics Services at Jumia, Apoorva Kumar

Until today, Jumia’s logistics services were reserved for e-commerce and food vendors operating on its marketplace. Jumia’s logistics services are now open to third party businesses who wish to leverage its network, technology and expertise for last mile deliveries across 11 countries in Africa. Senior Vice President Logistics Services at Jumia, Apoorva Kumar, said: “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.”

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In 2019, Jumia processed more than 20 million packages, thanks to the seamless integration of more than 300 logistics partners of all sizes. In addition, partnerships with players such as Total, Vivo Energy and Posta Kenya allow for an even wider presence across the 11 countries where Jumia operates on the continent.

“Businesses across the countries are re-examining their costs, especially during COVID-19. For many, logistics is a major cost driver and headache to manage. 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 better quality of service at lower cost,” Kumar said.

Read also:After Calling It A Fraud, American And CEO Of Citron Research Andrew Left Finally Buys Jumia’s Shares

Over the last few months, Jumia has been piloting its offering with selected clients, from small businesses shipping a few packages every week to larger corporations. CEO, Premier Food Industries Ltd Kenya, Joseph Choge, said: “Our new partnership with Jumia forms an integral part of our strategy to grow our e-commerce sales in the next five years. Jumia’s unique ability to handle logistics – order management and processing, shipping and delivery and payments across the country to end users has opened for us a new way to reach our consumers in a fast, efficient and effective manner more so especially during this time of COVID-19 pandemic.”

Read also:MTN Group sells Shares in Jumia for $142 million

Management staff of First City Monument Bank Limited (FCMB) Nigeria, Temitope Onibaniyi, said: “Jumia is facilitating the deliveries of our ‘Home Card delivery service’ via road and air freight to customers across Nigeria. We see a lot of value in Jumia’s supply chain solution; Technology integration with Jumia ensures close to real time visibility and a secure last mile delivery process of card products.”

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The move is also a boost for all Jumia Logistics local partners who will be able to drive more volume through the Jumia logistics network.

CEO ACOA Logistics Nigeria, Chidi Jud, said: “We have been Jumia’s logistics partner for many years. Our business has grown into an expansive operation hosting today 25 carriers and about 44 staff spanning multiple cities, all held together by Jumia’s integrated technology. We have adapted our business using Jumia’s apps that drive riders’ efficiency and customer experience. We are very pleased to be able to receive more volumes in order to help us gain scale and grow our business.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Jumia Branches Out Into Logistics Business In 11 African Countries

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.

Apoorva Kumar, Jumia’s senior vice president of logistics services
Apoorva Kumar, Jumia’s senior vice president of logistics services

“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.

Read more: Ghana Set To Get A Startup Act Early Next Year As It Commences The Drafting Of A Startup Bill

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