News from Jumia
Jumia’s revenues fell by 10% in the second quarter, dashing hopes that the COIVD lockdowns would lead to a flood of online orders. Revenue for the quarter fell to $41.1 million. There was increased demand in markets that went into total lockdown, but this only happened in 4 of the 10 countries where Jumia now operates. The company also said it planned to pay $5 million to settle class action lawsuits in the USA which allege misstatements and omissions related to its initial public offering on the NY Stock Exchange last year. Jumia has teamed up with Twiga, the Kenyan fresh food company to provide fresh farm produce direct to the home in Kenya. Twiga previously concentrated on providing retailers with fresh farm produce, cutting out the middlemen who had pushed prices up and often delayed the delivery of farm produce to the markets. This concept has been taken up elsewhere – see our report below on Agriple in Nigeria.
One country Jumia exited last year was Tanzania, however since then multiple ecommerce platforms have suddenly sprung up, from food and grocery delivery apps to ‘online malls’ that sell commercial goods, besieging a market still relatively new to online shopping and dining. A newly-established delivery app industry in Tanzania is serving up old business in a new format, diversifying the ecommerce market and driving consumer behavior beyond COVID.
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