E-commerce leader Jumia has begun offering its logistics network to third-party businesses, including traders who operate exclusively on social media platforms—a group it once viewed as competition. This strategic shift is designed to lower fulfilment costs and broaden revenue streams, as the company intensifies efforts to achieve profitability by 2027.
The new offering, called Jumia Delivery, enables third-party sellers to send packages across Nigeria using Jumia’s established logistics infrastructure, which includes 494 pickup stations nationwide. Following a successful pilot in Ivory Coast, the service has now launched in Nigeria and is set to roll out in Kenya, Senegal, and Ghana, subject to regulatory approval.
“Local social commerce merchants [one of our competitors] will always be around, and we are looking at this pool of merchants as an opportunity for Jumia,” CEO Francis Dufay stated during the company’s Q1 earnings call on May 8. “We are working to onboard them to our marketplace and help them generate more sales. We are also looking to sell our Jumia delivery services and generate profits from them.”
Jumia’s latest move positions it squarely against major logistics players such as Uber, Bolt, Chowdeck, Sendbox, and GIG, all of which have already established extensive distribution networks. What sets Jumia apart is its strategy of opening up its fulfillment engine—a move the company believes will help drive scale and boost cost efficiency across its operations, particularly in last-mile delivery.
To date, Jumia has deployed several cost-cutting strategies to bring down delivery expenses, which stood at $9.4 million in the first quarter of 2025, while working to improve margins. These efforts have included workforce reductions, notably a 3% decrease in headcount during Q1 2025, renegotiated contracts related to logistics and technology, and the implementation of more streamlined warehouse processes. With the launch of Jumia Delivery, the company aims to increase the volume of goods transported per trip, thereby optimising fixed costs related to warehousing and last-mile logistics.
However, Jumia Delivery enters a market crowded with competitors that have already carved out significant market share and built strong brand recognition. Notable among these are DHL, GIG Logistics, Kwik Delivery, and Sendbox. Additionally, delivery services operated by Glovo, Chowdeck, Uber, Indrive, and Bolt are leveraging network effects to expand their reach. Jumia must also contend with an increasing number of independent delivery riders, who often rely on personal relationships and offer more attractive pricing to sellers.
Despite the competition, Jumia’s leadership remains confident. “This is a scalable business that extends our value proposition across the digital economy,” the company said. That optimism appears to be resonating with investors: following the company’s earnings call, Jumia’s share price rose from $2.40 to $3.55.
