This is the first African technology company to be listed at the New York Stock Exchange. Jumia UPS announced a partnership. UPS will use Jumia infrastructure for its customers to provide a wider range of delivery options, including door-to-door package delivery and collection with a variety payment options.
The initial collaboration will cover Kenya, Nigeria and Morocco. There are plans to expand the partnership to Ghana, Ivory Coast, and other countries.
“This partnership will help small and medium-sized businesses in Africa that make up 90 percent of all businesses on the continent and are the backbone of the economy,” said Gregory Goba Ble, Vice President of Engineering and Operations for Indian subcontinent, Middle East and Africa, UPS.
“UPS’s asset-light approach, like the Jumia partnership, offers a pathway for businesses to quickly and reliably connect to new customers around the world through our global network, potentially accelerating their revenue growth.”
On the heels of this announcement, Jumia stock rose 7.8 percent. This is great news for a company which lost its unicorn status within one year of its Wall Street IPO in April 2019. The company once heralded as “Africa’s Amazon” is looking to correct its investment path after growing expenses at the close of 2021 further harmed its outlook.
“At the beginning of our journey, 10 years ago, logistics infrastructure was one of the most challenging aspects of our operating environment. This challenge was a catalyst for us to build an unparalleled logistics platform in Africa offering our sellers and consumers reliable, convenient and cost-effective delivery services,” said Apoorva Kumar, Senior Vice President Logistics, Jumia.
“Today, we are helping other businesses overcome these infrastructure challenges by giving them access to our logistics platform. We are humbled and delighted to have the opportunity to partner with UPS, a global logistics leader in Africa, to provide them last-mile solutions in Africa. We view this as a validation of the strength of our logistics platform as well as an incentive to double down on our efforts to further enhance our services and build a world-class logistics business in Africa.”