E-commerce opens new revenue stream for Kenyan courier firms

The uptake of e-commerce has opened new revenue stream to the courier operators that deliver the goods purchased online to the clients.

According to Geoffrey Mwove, chairman Courier Industry Association and director of courier at G4S Kenya, most courier companies have identified e-commerce as a high potential growth driver and are aligning to grow their retail outlets by training personnel, interfacing technology and fleet to deliver in agility and reliability at the lowest price possible.

“We have had a 30 per cent upsurge of courier shipments driven by booming e-commerce. The last half of 2015 as confirmed from industry players data, we saw reduced traffic due to slow down in government related procurement this was, however, compensated by e-commerce transactions,” said Mr Mwove.

Africa Internet Express (AIX) Kenya is among firms that saw the blessings of e-commerce in Kenya and moved fast to incorporate a single network for established and growing logistics providers.

“Every day we process thousands of orders from Jumia and Kaymu customers for delivery across the country within a specified timeline. Customers want delivery made fast and cheap.

“That efficiency is what our platform is built on and with e-commerce growing fast, it’s going to be one big party for logistics or courier companies that match up,” said Jonathan Parisot, managing director Africa Internet Express.

The firm is also the vehicle Jumia rode in to partner with courier service companies such as Aramex, Posta Kenya and G4S to establish offline pick-up points that would allow customers to shop online and pick up the item from an office near them.

Other than Jumia and Kyamu, OLX also signed a partnership with G4S mid this month that will see sellers on the platform deliver shipments to the nearest G4S collection centre for dispatch to the buyers within Nairobi. This brings to four the number of e-commerce retailers G4S has signed a similar deal, others include Kilimall and Melimu.

Leading the pack among online food retailers in Kenya is Hellofood a platform that lists hundreds of restaurants in Nairobi and Mombasa from which you can order for food and have it delivered to your office or home in the two cities within an hour and one pays on delivery.

To ensure efficiency, Hellofood outsources the services of Maduka a local courier service while restaurants selling on its platform such as Debonairs, Artcaffe and Thai village, among others, deliver through an in-house courier company.

“Food delivery service is on demand driven by a young middleclass generation with tight work schedules that prefers to have their meals delivered to them, if you deliver on time, they will buy from you again. It’s a delicate balance for any efficient logistics company. If you get it right, you win,” Duncan Muchangi, managing director Hellofood