Jumia Launches Third-party Delivery Service

Beulah Godfrey

May 13, 2025
2 min read

E-commerce company Jumia has started offering its delivery service to third-party sellers, including traders who sell only on social media. This move marks a big change in Jumia’s strategy, as it now partners with businesses it once saw as rivals. The company wants to cut delivery costs and make more money by 2027.

Jumia Delivery Now Open to Everyone

The new service, called Jumia Delivery, lets outside businesses send packages across Nigeria using Jumia’s delivery system. This includes access to 494 pickup stations in the country. After testing the service in Ivory Coast, Jumia officially launched it in Nigeria. The company plans to expand to Kenya, Senegal, and Ghana, depending on regulatory approval.

Jumia CEO Francis Dufay shared this update during the company’s Q1 2025 earnings call on May 8. He said, “Social media sellers are here to stay. Instead of seeing them as competition, we want them on our marketplace. We also want them to use Jumia Delivery so we can grow together and earn more.”

With this move, Jumia now competes directly with well-known logistics companies like GIG Logistics, Sendbox, Kwik Delivery, Uber, Bolt, Chowdeck, and others. These brands already have strong networks and loyal customers. Many also work with individual delivery riders who offer cheap and fast services to sellers.

However, Jumia believes it has an edge. By using its own warehouses and delivery network more efficiently, the company can save money and lower prices. In Q1 2025, Jumia spent $9.4 million on deliveries. To cut costs, the company has already reduced its workforce by 3%, improved warehouse operations, and renegotiated tech and logistics contracts. With Jumia Delivery, the company can carry more packages per trip, which will reduce fuel and storage costs.

Investors React Positively

Despite the tough competition, Jumia remains confident. “This is a scalable business that adds value to the digital economy,” the company said in its earnings report. Investors seem to agree. After the earnings call, Jumia’s share price rose from $2.40 to $3.55.

Jumia’s plan to open up its delivery system to more businesses could help it grow faster and improve profits. As it expands Jumia Delivery across Africa, the company hopes to stay ahead in the race for faster, cheaper e-commerce services.