Companies

Jumia eyes third party deliveries to lift profit

sam

Jumia CEO Sam Chappatte. FILE PHOTO | NMG

E-commerce platform Jumia Kenya has expanded its logistics arm to include third party deliveries.

The firm’s chief executive officer Sam Chappatte said the new system aims to meet customers’ delivery and logistical needs.

The rollout means that both Jumia sellers and non-sellers can now use the platform for product distributions. Before, this was reserved for businesses that operated on its marketplace.

“Businesses across the countries are re-examining their costs, especially during Covid-19,” Mr Chappatte said.

“We have the right infrastructure, people, partnerships and technology required to help third parties and partners solve logistics and marketing challenges. We believe we can provide better quality of service at lower costs”

Jumia’s logistics marketplace relies on two main pillars. The first being its proprietary technology which aggregates demand and matches it with supply capacity on several parameters such as service, reachability of network and cost of delivery.

Secondly, its logistics network, which includes 400 drop-off stations and pick-up stations.

Last year, the firm processed more than 20 million packages through integration of more than 300 logistics partners of all sizes.

This is in addition to partnerships with Total, Vivo Energy and Posta Kenya to allow for an even wider presence.

Jumia Technologies AG financial result ended September result shows that operating loss reached a three-year low of Sh3.6 billion (€28.0 million), which dropped by 49 percent year-over-year.