Jumia has revolutionized e-commerce in Africa. Its footprint throughout Africa extends beyond the major cities and ventures in rural areas often forgotten in the modernization of Africa. Jumia has made a lot of strides but they are still associated with high fees, mostly stemming from delivery charges imposed on its vendors and customers. Jumia has handed over last-mile logistic capabilities to UPS an American shipping company.
UPS will lean in on Jumia's infrastructure to deliver and pick up packages from door-to-door with a variety of payment options. It's always surprising that Jumia is constantly willing to give up the responsibility of delivering their goods and willing to share their profits with third-party delivery companies.
This partnership will also allow UPS the access Jumia drop-off stations throughout the continent for their customers who will now be able to drop off packages at Jumia stations. This collaboration will initially be rolled out in Egypt, Ghana, Kenya, Morocco, Nigeria, and Ivory Coast.
This partnership is poised to benefit small and medium-sized companies that sell on Jumia as 90% of their vendors who sell their products on the Jumia platform. Jumia offers a pathway for its vendors to quickly connect to new markets by having a presence online on this SaaS platform sharing the space with other vendors holding items and brands of all kinds.
What this partnership represents to the Keen founders of startups is a platform that will perfect logistics and e-commerce throughout Africa, lowering fees and costs that are passed down to the consumer, just like Amazon did in America. There is still room for e-commerce sites that are just starting up in Africa to define their business model and perfect the task at hand and deliver goods ordered online using their platform throughout the continent.
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