Jumia disables goods pick-up option for online shoppers

Customers of e-commerce firm Jumia are now forced to choose either office or home delivery for purchases after the company withdrew the flexible offline pick-up points alternative.

In-person pickup stations, unlike home and office deliveries, were popular with a section of shoppers keen to save on cash as it cost Sh150 to collect goods from designated points while office deliveries tallied up to Sh300 for locations within the Nairobi’s central business district.

Cost for home and office deliveries vary depending on the buyer’s location and quantity of items purchased and can average as low as Sh100 to as high as Sh15,000.

The e-commerce firm’s plan to do away with physical locations comes almost a year after the company posted a Sh14.9 billion loss before tax, which it attributed to increased investment in the business. The company, which operates in 23 African countries including Kenya, increased its capital expenditure 46.67 per cent to Sh273.2 million (€2.2 million) in the review period, up from Sh186.2 million (€1.5 million) the year before.

Despite the challenges, Jumia’s sales grew 41.8 per cent to Sh62.95 billion on the back of higher customer numbers.

The scrapping of physical collection points is an indicator that the firm is keen on cutting costs.

Jumia recently established partnerships with courier firms and Posta Kenya in a bid to grow its customer base.

The online retailer opened shop in Kenya in March 2013, having been founded in Nigeria a year earlier. Jumia’s online brands include Jumia, Jumia Food, Jumia Travel, Jumia Deals, Jumia House, Jumia Jobs and Jumia Car.