JUMIA WANTS TO DELIVER MORE FOOD
Last week Jumia released its 2020 financial reports and they suggest that it’s making significant progress towards profitability. Its operating loss reduced by 34% from €227 million in 2019 to €149 million in 2020.
In its quest to continue on this path it’s going to focus more on food delivery.
Why so?
20% of all transactions across the Jumia platform is made up of food and growing quickly. The e-commerce giant completed 5 million such orders in 2020.
What’s next?
Jumia will expand to Egypt following the exit of Uber Eats. The move into Egypt means Jumia is offering some form of delivery in 11 of its markets except South Africa, where Naspers-owned Mr D and Uber Eats dominate.
Why it matters
In 2020, demand for delivered meals and groceries exploded worldwide as restrictions to contain the coronavirus kept everyone indoors. Morgan Stanley estimated that the online delivery market hit $45 billion in 2020.
Although in Africa, the trend has been slower to take off because internet connections remain sluggish and unaffordable for large parts of the population.
Jumia would rather align themselves with where the money is being spent and clearly, food is where it’s at.
