Nigerian online retail leader Jumia has announced that it is making its logistics service available to third parties. The services were previously reserved for ecommerce and food vendors operating on its marketplace, but are now open to any businesses that wish to leverage its network, technology and expertise for last mile deliveries across 11 countries in Africa.
“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,” says Apoorva Kumar, senior vice president for logistics services at Jumia. “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:
- Proprietary technology that aggregates demand and matches it with supply capacity on the basis of parameters like quality of service, reachability of network and cost of delivery;
- Its logistics network, which includes over 20 warehouses (more than 110 000 sq m) and more than 1,300 drop-off stations and pick-up stations across Jumia’s 11-country market, 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. In addition, partnerships with players like Total, Vivo Energy and Posta Kenya allow for a wider presence across the 11 countries.
“Businesses across the countries are re-examining their costs, especially during COVID-19,” says Kumar. “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.”
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.
“Our new partnership with Jumia forms an integral part of our strategy to grow our e-commerce sales in the next 5 years,” says Joseph Choge, CEO of Premier Food Industries in Kenya. “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.”
Temitope Onibaniyi, of First City Monument Bank Limited (FCMB) in Nigeria, says Jumia is facilitating the deliveries of its 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,” says Onibaniyi. “Technology integration with Jumia ensures close to real time visibility and a secure last mile delivery process of card products.”
This move is also a boost for 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,” says Chidi Jud, CEO of ACOA Logistics in Nigeria. “Our business has grown into an expansive operation hosting 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.”