In a major strategic shift, African e-commerce giant Jumia has launched Jumia Delivery, a logistics service now available to third-party businesses, including social media-based merchants it once viewed as competition.
The move signals a broader effort by the company to cut fulfilment costs, diversify revenue streams, and stay on track to achieve profitability by 2027.
The new service leverages Jumia’s existing logistics infrastructure, including 494 pickup stations across Nigeria, and allows external sellers to ship packages nationwide. After a successful pilot in Ivory Coast, Jumia Delivery has officially launched in Nigeria and is expected to roll out in Kenya, Senegal, and Ghana, pending regulatory approvals.
“Local social commerce merchants will always be around, and we are looking at this pool of merchants as an opportunity for Jumia,” CEO Francis Dufay said during the company’s Q1 earnings call on May 8. “We are working to onboard them to our marketplace and help them generate more sales. We are also looking to sell our Jumia delivery services and generate profits from them.”
The pivot positions Jumia in direct competition with established logistics players such as DHL, GIG Logistics, Sendbox, and Kwik Delivery, as well as app-based delivery services like Uber, Bolt, Indrive, Glovo, and Chowdeck. These competitors have already gained strong traction, particularly in last-mile delivery, where independent couriers also dominate through personal networks and competitive pricing.
Unlike its rivals, Jumia aims to capitalise on economies of scale by opening its logistics network to external users. The strategy is expected to improve cost efficiency by moving more goods per trip, thereby reducing the fixed costs of warehousing and delivery operations.
In Q1 2025, Jumia spent $9.4 million on fulfilment. To manage costs, the company has already implemented several internal changes, including a 3% workforce reduction, renegotiated logistics and tech contracts, and improved warehouse efficiency. The Jumia Delivery service is seen as a key addition to this cost-optimisation drive.
Despite the competitive landscape, Jumia is confident in the scalability and appeal of the new service. “This is a scalable business that extends our value proposition across the digital economy,” the company stated.
Investors appear to agree. Following the earnings announcement and details of the logistics rollout, Jumia’s share price jumped from $2.40 to $3.55, signaling renewed confidence in the company’s turnaround strategy.
