Jumia Food Kenya has announced the launch of Jumia Prime, a subscription package that allows customers pay a standard one, three or six-month fee and receive unlimited free deliveries of orders of takeaway food or groceries placed on the Jumia Food app or website.
Jumia Prime will cost Sh500 ($4.80), Sh1,200 ($11.50) and Sh1,800 ($17.30) for one month, three months, and six months subscription respectively. The introduction is part of Jumia’s strategy to acquire and retain a regular customer base in Kenya. Jumia Food operates in and round Nairobi, as well as in Eldoret, Kajiado, Kiambu, Kisumu, Machakos, Mombasa and Nakuru.
Jumia is facing pressure from two international food delivery apps in Kenya: Glovo and Uber Eats. More widely, the company has come under sustained pressure since its IPO in May 2019 to deliver growth. Having been heralded as Africa’s first unicorn (i.e. billion dollar IPO), its share price has fallen sharply amid consistent investor concerns that its business model is vulnerable to fraud and it cannot deliver sustainable growth.
Uber Eats launched in Kenya in May 2018 and within one year had signed up more than 420 restaurant partners. It only operates in and around Nairobi, particularly in the Lavington, Muthangari, Kilimani, Kileleshwa and Westlands areas.
Spanish app Glovo launched in Kenya in February 2019, and effectively offers a delivery service for anything that will fit on a rear storage box of a motorbike. Its primary business is the delivery of takeaway food and groceries. In May we reported that Glovo had partnered with Innscor’s Simbisa Brands, owners of the Pizza Inn, Chicken Inn, Creamy Inn and Baker’s Inn foodservice brands and franchise holder for Galito’s grilled chicken restaurants in Kenya. It has also signed up leading supermarket chains Tuskys and Naivas.