Jumia Kenya has opened up its logistics network to third parties, seeking to appeal to companies looking for more reach during the COVID-19 pandemic. In Egypt, Jumia has announced an agreement with the country’s five largest banks to offer interest-free installment services for customers.
Jumia Kenya is opening up its delivery services to third parties. This includes its Next Day delivery to major cities, Same Day delivery in Nairobi, and cash on delivery services. Jumia Kenya CEO Sam Chappatte is hoping to appeal to businesses seeking an out of the box logistics solution during the COVID-19 pandemic. Jumia claims to have access to thousands of bikes and vans, as well as hundreds of pick up stations in Kenya. Jumia has piloted this program over the last months, and believes the service is relevant for medium and large businesses. The internet retailer already works with Majid Al Futtaim (Carrefour) in Kenya, offering a branded storefront.
In January, Jumia outlined plans for Jumia Advertising in Kenya, seeking to leverage the company’s reach among higher value, internet enabled Kenyan consumers. The company claimed to have access to around 2-3m unique visitors each month.
More widely, the company is seeking to leverage its capabilities much harder in core markets such as Nigeria and Kenya. Since its groundbreaking IPO on the NYSE in April 2019, its share price has tanked amid claims of fraud and misleading investors. In March its share price reached an all time low of $2.39, having been priced at $14.50 before the IPO. At the time of writing they have since recovered to $5.77.
In Egypt, Jumia has announced an agreement with the country’s five largest banks to offer interest-free installment services for customers. It has also introduced a 20% discount on products purchased using Banque Misr and CIB credit cards, and Vodafone Cash. The company estimates that He added that Egypt’s e-commerce market has grown by almost 80% due to the COVID-19 pandemic.
As Trendtype noted at the time of the IPO, Jumia’s potential as a key player in African retail is based on its ability to dominate small, but growing country markets where there is no room for a #2 player. It also needs to sweat its valuable customer base and leverage its capabilities and scale as a logistics company.