Jumia opens up its logistics network to third parties across 11 countries

Jumia is opening up its logistics network to third party businesses in 11 countries. The move means the internet retailer will offer its platform and network, enabling companies to use its final mile delivery capabilities. Prior to the announcement, Jumia only allowed access to its logstics network to companies using its marketplace.

Jumia operates 20 warehouses, with over 110 000m² of space. It also operates more than 1,300 drop-off stations and pick-up stations, partly thanks to partnerships with Total, Vivo Energy and Posta Kenya.

In 2019, Jumia processed more than 20m, delivered through 300 logistics partners. It opened up its logistics network to third parties in Kenya in June this year.

Jumia is being pressed by its investors to leverage its scale and platform more, and clearly this is buoying confidence: the company’s share price has nearly quadrupled since July.

As Trendtype identified at the time of Jumia’s IPO, its valuation is based on it dominating the digital retail landscape in Africa. In order to do that, it has to build on what it does best – a platform and network that has been exceedingly expensive to build, and a solid customer base totalling several million consumers. Since Jumia’s IPO, it has seen millions of dollars of investment pour into companies positioning themselves as the “Uber of freight” in Africa – most obviously Kobo360Lori and Sendy.