African e-commerce pioneer Jumia has made a daring strategic move by allowing third-party companies, such as informal merchants and social media sellers, to use its logistics infrastructure. The company announced on Tuesday.
The company is changing from a traditional online marketplace to a key logistics and fulfilment player in Africa’s rapidly expanding digital economy with the introduction of its new service, Jumia Delivery.
Jumia’s aggressive strategy to diversify revenue and quicken its path to profitability is in line with this move.
Jumia plans expansion to Senegal, Ghana, Kenya after Côte d’Ivoire’s launch
Jumia Delivery, which was introduced in Nigeria following a successful pilot in Côte d’Ivoire, enables independent vendors to transport goods throughout the nation by utilising Jumia’s current fleet, storage facilities, and 494 pickup locations.
Subject to regulatory approvals, the company intends to extend the service to Senegal, Ghana, and Kenya.
Francis Dufay, the CEO of Jumia, stated that the company is consciously changing its perspective from one of rivalry to cooperation with informal merchants. “Local social commerce merchants will always be around, and we are looking at this pool of merchants as an opportunity for Jumia,” Dufay stated during the Q1 2025 earnings call. “We are working to onboard them to our marketplace and also offer them our delivery services.”
Jumia Delivery is strategically coming at a time when millions of vendors use Instagram and WhatsApp to sell their goods, contributing to Africa’s booming digital economy.
Last-mile delivery and fulfilment are two areas where Jumia thinks it can add substantial value, but these informal businesses frequently struggle with these tasks.
Jumia Delivery to compete with DHL, GIG, Kwik, others
With its move, Jumia will be directly competing with several logistics companies that are already well-established in the market, including international companies like DHL, local leaders like GIG Logistics and Kwik Delivery, and online marketplaces like Sendbox, Chowdeck, Bolt, and Uber.
Many of these rivals benefit from network effects and flexible pricing schemes tailored for independent vendors.
Its integrated logistics operation, however, is a competitive advantage, according to Jumia. To improve delivery volumes, make better use of its infrastructure, and reduce unit costs—particularly in last-mile logistics, which is one of the priciest e-commerce segments—the company plans to open up its delivery network to third parties.
Jumia spent $9.4 million on logistics in Q1 2025
Jumia spent $9.4 million in Q1 2025 on logistics-related costs. Improved warehouse efficiency, renegotiated third-party agreements, and workforce optimisation (including a 3 The percent headcount reduction has already contributed to lowering that number. By transforming fixed logistics expenses into possible sources of income, Jumia Delivery builds on this momentum.
Jumia’s reach outside of cities is one of its advantages. In the first quarter of 2025, 58 percent of Jumia’s orders came from rural and upcountry areas.
This is a remarkable number in a region where logistics is still one of the biggest obstacles to the expansion of e-commerce. The goal of Jumia is to further penetrate these underserved markets by bringing informal sellers into its network.
“The African digital economy demands efficient logistics, and Jumia Delivery is our answer to that call,” said Dufay.
Jumia Delivery could potentially transform the industry as the company aims to achieve profitability by 2027. The initiative enhances its position in Africa’s larger e-commerce ecosystem while bringing in a new source of income. It also represents a developing business model, one that goes beyond simply selling goods online and instead focuses on helping others do the same more effectively.
Jumia Delivery may usher in a new era in the company’s growth story and Africa’s developing digital economy as investor confidence rises, as evidenced by the company’s share price jump following earnings.
Jumia’s persistent revenue decline
For some time now, the company has been reporting losses in its operations; as a result, it is taking some measures to reduce the losses and get back to profitability.
Jumia reported a US$99.1 million loss after taxes in 2024, a slight decline from the US$99.3 million loss in 2023. The company’s customer base shrank by roughly 0.2 million due to market departures. In the first quarter of 2025, the company reported a $16.5 million pre-tax loss.
Last year, the e-commerce company took a drastic step to close down its operations in Tunisia and South Africa in order to reduce operational costs and become more profitable.
These steps include pulling out of the regular grocery and food delivery industries, cutting back on delivery services unrelated to its main e-commerce company, and reducing its workforce.
According to CEO Francis Dufay, the action is a part of a strategy to refocus on markets with higher potential for profit, like Nigeria.