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Jumia to capitalize on 3rd party delivery services

The new push is aimed at reducing operational costs and lifting profits


Jumia Kenya, Africa’s prominent e-commerce platform is expanding its logistics arm to include more third-party businesses. Sam Chappatte, the Chief executive said that the new system will help meet customer delivery and logistical needs. This rollout will assist Jumia sellers and non-sellers to utilize the platform for product distribution before they are reserved on its marketplace.

This development is no surprise as businesses re-examine their operational costs during the pandemic. He also pointed out infrastructure, partnerships, people, technology, to help the third parties in their marketing and logistical challenges.

Jumia has managed to seal win-win partnerships with leading companies such as Vivo Energy, Total, and Posta Kenya in an effort to increase its presence. It’s however worth noting that a glimpse through Jumia’s financials ending September reveals operational losses for a sustained three-year low worth €28.0 million.

As a logistics marketplace Jumia is reliant on two key pillars, the first is the proprietary technology that aggregates demand and matches it to the supply capacity along with the parameters of service,  network reach, and cost of delivery.

Secondly, the logistics network features 400 drop-offs and pick up stations. Last year alone the firm processed over 300 million packages by integrating with 300 logistic partners of all sizes.

Source: BusinessDaily


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