A 2019 GSMA analysis highlights how Masoko, Safaricom's e-commerce platform, utilizes the telecom giant's 160,000 M-Pesa agents as delivery points and collection centers. This strategy enables service coverage across 45 of Kenya's 47 counties, addressing logistical challenges faced by competitors.
The report notes that mobile money operators in developing markets encounter distribution barriers, which Masoko mitigates through its parent company's agent infrastructure. This approach functions as both a delivery hub and payment gateway, capitalizing on M-Pesa's established user trust.
Since its 2018 launch, Masoko has grown to include 120 active sellers offering over 30,000 products, including electronics, fresh produce, and dairy. The platform's Fresh division specifically focuses on perishable goods, demonstrating its expanding market reach.
The analysis states, "As in other developing countries, Safaricom’s main e-commerce challenge has been logistics. The MNO is addressing this by using its sizeable agent network as delivery and collection points." Safaricom, East Africa's most profitable telecom company, is using Masoko to diversify revenue beyond traditional services.
