African e-commerce giant Jumia Technologies has expanded its online food delivery business to Egypt after Uber Eats exited the Egyptian market. Africa’s pioneer e-commerce business has expanded its offering from phones and electronics to food delivery.
According to CEO Sacha Poignonnec, food delivery accounts for 20% of all transactions conducted on the platform. The company’s entry into the Egyptian market is strategic after the exit of Uber Eats.
We earlier reported that the company reported a fourth-quarter loss in 2020, on the backdrop of increased merchandised sales year-on-end. The Covid-19 pandemic resulted in increased demand for meals and groceries worldwide. The online food delivery market hit $45 billion in 2020 alone, according to Morgan Stanley estimates.
Jumia initially launched in 2012 by Jeremy Hodara and Sacha Poignonnec operating from Lagos, Nigeria. Today the company has a footprint across 11 African countries. Despite operating from Africa, Jumia is based in Berlin.
In 2019 Jumia listed at the New York Stock Exchange, where the stock price has risen by 1000% in the past year, valuing it at $3.9 billion.
Thus far the group has expanded its trading items from phones and electronics to fashion and general products. Other revenue sources are the payments and logistics units that offset the slowdown in the uptick of new users.
Thus far, Jumia offers food delivery in all of its markets of operation with the exception of South Africa where Naspers and Uber Eats are dominant.