This archive report was first published on 30 July 2019.
July 30, 2019, marked a significant milestone for Jumia, Africa's first e-commerce company to list on the New York Stock Exchange (NYSE). Despite reporting a loss of Kshs 14 billion in 2018, the company's listing was a testament to its growth and potential.
However, Jumia still faces several challenges, including the lack of formal addresses for deliveries, which affects not only Kenya but the entire continent. To address this issue, Jumia has partnered with Vivo Energy Plc, the official licensee of over 2,100 Shell and Engen service stations across Africa.
Vivo Energy has 199 service stations in Kenya, spread across various towns. Under the partnership, customers can pick up their Jumia purchases from a nearby Vivo Energy service station. If the purchase is not paid for, customers can settle the amount at the station, similar to when picking up refilled cooking gas.
According to Jumia's Vice President of Marketing, Boris Gbahoue, the company is committed to adapting its technology to fit local infrastructure and become more accessible to customers. The partnership with Vivo Energy will enable Jumia to deliver products conveniently to customers, including those in remote areas.
Low internet penetration and a lack of proper payment means in some markets also pose a threat to Jumia's growth across Africa. However, in Kenya, the widespread use of M-PESA has mitigated this concern.
