One of the largest and most trusted global shipping and logistics companies in the world, UPS recently entered into a new partnership with one of Nigeria’s number one online shopping sites Jumia, to grow its reach on the African continent. This new partnership will give UPS access to the e-commerce firm’s last-mile delivery infrastructure. Leveraging on Jumia infrastructure in Africa, UPS plans to offer its customers an extended range of delivery solutions, which includes door-to-door package delivery and collection, with a large variety of payment options.
This new partnership will ensure that UPS customers can pick up or drop off packages for sending across the world at Jumia’s stations in Africa (Kenya, Nigeria, Morocco). They also have plans of expansion to Ghana and the Ivory Coast and thereafter to other African countries where Jumia operates.
According to Apoorva Kumar, Senior Vice President of Logistics, Jumia, in his words, “At the beginning of our journey, 10 years ago, logistics infrastructure was one of the most challenging aspects of our operating environment. This challenge was a catalyst for us to build an unparalleled logistics platform in Africa offering our sellers and consumers reliable, convenient and cost-effective delivery services.
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“Today, we are helping other businesses overcome these infrastructure challenges by giving them access to our logistics platform. We are delighted and humbled by the opportunity to partner with UPS, a global logistics leader, to offer the last mile solutions in Africa. We view this as a validation of the strength of our logistics platform as well as an incentive to double down on our efforts to further enhance our services and build a world-class logistics business in Africa,”
This partnership will be of great benefit to businesses in Africa, most especially the small and medium-sized businesses because it will offer them the channel to quickly and effectively connect to new customers around the world through the UPS global network. According to statistics small and medium-scale businesses which are believed to be the backbone of the African economy make up 90 percent of businesses on the African continent, which require delivery, and logistics services to deliver value, grow and break even. With this new partnership, their business will definitely experience a turnaround.
This partnership is no doubt a significant step for Jumia in Africa, as the market is projected to reach $180 billion in trade by 2025. The partnership has already started paying off already. According to reliable sources, the American depository receipts of Jumia jumped to 30% on the New York Stock Exchange, which saw Jumia rise from $934.6 million to $1.2 million. There’s still a lot to explore in the African e-commerce market, as e-commerce on the continent is still about five percent of the total retail.
