Jumia Opens Logistics Service to Third Parties
Jumia (NYSE:JMIA) has expanded its logistics service, now offering it to third-party businesses in 11 African countries. Previously limited to its marketplace vendors, this service allows external companies to utilize Jumia's extensive logistics network and technology. Jumia boasts over 20 warehouses and 1,300 delivery points, significantly enhancing delivery efficiency. The initiative, piloted successfully with various clients, aims to address logistics challenges for businesses particularly during COVID-19, providing better services at lower costs.
- Expansion of logistics services to third-party businesses enhances revenue potential.
- Jumia's logistics network includes over 20 warehouses and 1,300 delivery points.
- Successful pilot programs with various clients indicate strong demand for services.
- None.
LAGOS, Nigeria--(BUSINESS WIRE)--Jumia (NYSE:JMIA) has announced that its logistics service is now available for use by third parties. Until today, Jumia’s logistics services were reserved for ecommerce 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.”
Jumia's logistics marketplace is uniquely adapted to Africa, based on two main pillars. The first is its proprietary technology which aggregates demand and matches it with supply capacity on the basis of several parameters like quality of service, reachability of network and cost of delivery. The second pillar is its logistics network, which includes among its physical locations over 20 warehouses (north of 110 000 sqm) and more than 1,300 drop-off stations and pick-up stations, located across Jumia’s 11-country market, including in remote areas. 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.
Over the last few months, Jumia has been successfully piloting its offering with selected clients, from small businesses shipping a few packages every week to larger corporations. “Our new partnership with Jumia forms an integral part of our strategy to grow our e-commerce sales in the next 5 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,” said Joseph Choge, CEO Premier Food Industries Ltd Kenya. “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," said Temitope Onibaniyi, First City Monument Bank Limited (FCMB) Nigeria.
This move is also a boost for all Jumia Logistics local partners who will be able to drive more volume through the Jumia logistics network. “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, said Chidi Jud, CEO ACOA Logistics Nigeria.
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About Jumia
Jumia is a leading e-commerce platform in Africa. Jumia is built around a marketplace, Jumia Logistics, and JumiaPay. The marketplace helps millions of consumers and thousands of sellers to connect and transact. Jumia Logistics enables the delivery of millions of packages through our network of local partners. JumiaPay facilitates the payments of online transactions within the Jumia’s ecosystem. With over 1 billion people and 500 million internet users in Africa, Jumia believes that e-commerce is making people’s lives easier by helping them shop and pay for millions of products at the best prices wherever they live. E-commerce is also creating new opportunities for SMEs to grow, and job opportunities for a new generation to thrive.
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