In a bold strategic shift, African e-commerce pioneer Jumia has opened its logistics infrastructure to third-party businesses—including social media sellers and informal merchants. With the launch of its new service, Jumia Delivery, the company is transforming itself from a traditional online marketplace into a central logistics and fulfillment player in Africa’s fast-growing digital economy. This move aligns with Jumia’s aggressive strategy to diversify revenue and accelerate its path to profitability.
Launched in Nigeria after a successful pilot in Côte d’Ivoire, Jumia Delivery allows third-party sellers to move packages across the country using Jumia’s existing fleet, warehouses, and network of 494 pickup stations. The company plans to expand the service to Kenya, Ghana, and Senegal, pending regulatory approvals.
Jumia’s CEO, Francis Dufay, said the company is intentionally shifting from seeing informal merchants as competition to viewing them as collaborators. “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.”
The timing couldn’t be more strategic. Africa’s digital economy is surging, with millions of sellers leveraging platforms like WhatsApp and Instagram to move products. These informal businesses often struggle with fulfillment and last-mile delivery—areas where Jumia believes it can create significant value.
A Competitive Bet on Scale
Jumia’s move places it in direct competition with an array of logistics players already entrenched in the space, including global firms like DHL, regional champions like GIG Logistics and Kwik Delivery, and digital platforms such as Sendbox, Chowdeck, Bolt, and Uber. Many of these competitors benefit from network effects and flexible pricing models tailored for independent sellers.
Yet Jumia sees its integrated logistics operation as a competitive advantage. By opening up its delivery network to third parties, the company aims to increase delivery volumes, better utilize its infrastructure, and lower unit costs—especially in last-mile logistics, one of the most expensive segments in e-commerce.
In Q1 2025, Jumia spent $9.4 million on logistics-related expenses. That figure has already been tempered through internal measures such as workforce optimization (including a 3% headcount reduction), warehouse efficiency improvements, and renegotiated third-party agreements. Jumia Delivery builds on this momentum by turning fixed logistics costs into potential revenue drivers.
Strength in the Hinterlands
One of Jumia’s strengths lies in its reach beyond urban centers. In the first quarter of 2025, rural and upcountry orders accounted for 58% of Jumia’s total orders—an impressive stat in a region where logistics remains one of the largest barriers to e-commerce growth. By connecting informal sellers to its network, Jumia aims to further penetrate these underserved markets.
“The African digital economy demands efficient logistics, and Jumia Delivery is our answer to that call,” said Dufay.
Path to Profitability
As Jumia aims to achieve profitability by 2027, Jumia Delivery could be a game changer. The initiative adds a new revenue stream while strengthening its role in Africa’s broader e-commerce ecosystem. It also signals a maturing business model—one that’s not just about selling products online but enabling others to do so more efficiently.
With investor confidence rising—evident in Jumia’s share price jump post-earnings—Jumia Delivery may mark a new chapter in the company’s growth story and Africa’s evolving digital economy.
