Jumia bets on logistics to drive profit by 2027E-commerce company Jumia is broadening its revenue base with a fresh offering: third-party logistics. With the launch of Jumia Delivery, the company now allows external businesses—including social media merchants—to use its logistics infrastructure for nationwide delivery in Nigeria. This shift follows a successful pilot in Côte d’Ivoire and comes as Jumia intensifies efforts to reach profitability within two years.
Jumia’s pivot is significant. Social sellers, once seen as competitors, are now being embraced as strategic partners. “Local social commerce merchants will always be around… we are looking at this pool of merchants as an opportunity,” said CEO Francis Dufay during the Q1 earnings call on 8 May. He added that onboarding these merchants onto Jumia’s delivery system will generate new sales and improve logistics income.
Currently operating with 494 pickup stations across Nigeria, Jumia plans to roll out the service in Kenya, Senegal, and Ghana, pending approval. The logistics platform is designed to drive cost efficiency, especially in last-mile operations, where delivery expenses have weighed heavily. In Q1 2025, delivery costs hit $9.4 million.
Jumia’s expansion into logistics places it in direct competition with major players like GIG Logistics, Kwik, DHL, Sendbox, Uber, Bolt, and even newer players such as Chowdeck and Indrive. While these competitors already have strong networks and brand loyalty, Jumia is hoping its scale and tech-driven approach will help it stand out.
What gives Jumia an edge, according to its leadership, is its ability to consolidate goods and streamline routes, lowering costs per delivery. “This is a scalable business that extends our value proposition across the digital economy,” the company said.
To further reduce fulfilment costs, Jumia has already made cuts. A 3% drop in staff size, improved warehouse management, and renegotiated contracts have all contributed to early gains. By allowing more goods to be transported per trip under the new model, Jumia hopes to optimise its existing fixed assets—especially in warehousing and last-mile systems.
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