Jumia’s Diverse Business Model Includes Logistics and Payment Services
In the future, major payment platforms will decide to go into a wide range of marketplace businesses and not just give storefronts to their merchants. For example, they can develop logistics businesses like Amazon, Jumia, and Takealot have done. A decade ago, when Jumia started, it focused on selling directly to users from its warehouses, but the challenges of ecommerce in Africa led it to develop internal payments and logistics arms. Soon enough, Jumia began offering these services to online sellers in its marketplace and other companies, in addition to selling advertising space. A study of Jumia’s performance in 2021 shows that, for the first time, Jumia is recording revenue from advertising and logistics among its monetization streams, recognition of the company’s diversification, and push towards profitability.
See this article: https://qz.com/africa/2136435/jumia-has-also-become-an-advertising-and-logistics-company/
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