Jumia, Africa’s leading e-commerce platform, has expanded its logistics arm, Jumia Delivery, into the Nigerian market, leveraging its successful rollout in Côte d’Ivoire as a blueprint. The move comes as part of the company’s broader strategy to improve operational efficiency and target profitability within the next two years. By offering its delivery services to third-party merchants and individual users, Jumia seeks to strengthen Africa’s e-commerce infrastructure while diversifying its revenue streams. The launch in Nigeria is particularly significant. As the continent’s largest economy and one of Jumia’s strongest markets, Nigeria offers immense growth potential, especially in underserved rural and upcountry regions. According to the company, over 58% of all orders in Q1 2025 originated from these areas, highlighting both demand and the effectiveness of Jumia’s logistics network. Jumia Delivery will now capitalize on this demand, using an already established fleet and distribution system to facilitate last-mile delivery solutions not just for Jumia’s platform, but for external clients as well.
Francis Dufay, CEO of Jumia, emphasized the importance of this expansion, stating, “Africa’s growing digital economy demands robust and efficient delivery services, and we are excited to introduce Jumia Delivery as a reliable solution to improve last-mile logistics.” With this move, Jumia aims to position itself as more than just an e-commerce platform—it is becoming a key logistics enabler on the continent. The expansion is also reflective of Jumia’s new direction following a phase of cost optimization. Rather than pouring resources into less profitable verticals, the company is now focusing on reinforcing its strengths e-commerce and logistics. The Nigerian debut of Jumia Delivery marks a strategic use of existing assets to generate incremental revenue without incurring massive capital expenditure.
Profitability in Focus: Restructuring and Strategic Retreats
While the Nigerian launch is a forward-looking initiative, it is part of a larger plan to turn the company profitable. Jumia Technologies has been undergoing a significant operational restructuring since late 2023. As part of this realignment, the company exited less viable markets and pared down non-core services. According to Reuters, Jumia shut down its operations in Tunisia and its South African fashion outlet Zando. These closures were driven by a combination of low growth potential, intense competition, and macroeconomic headwinds. In a bid to streamline operations, Jumia also discontinued services such as meal and grocery deliveries, which were not directly tied to its core e-commerce mission. Employee layoffs and a focus on high-yield segments have become central to the company’s operational overhaul. CEO Francis Dufay explained that these tough decisions were necessary to align with the company’s long-term profitability goals, especially in a region where logistics costs and digital infrastructure challenges significantly affect margins.
The shift marks a departure from Jumia’s previous approach, which aimed at market saturation and service diversification. Instead, the company is now embracing a leaner, more focused operational model. Jumia Delivery in Nigeria, therefore, is not just an expansion—it’s a calculated pivot to harness high-performing verticals and ensure sustainable growth. In essence, Jumia’s strategic entry into Nigeria’s logistics landscape through Jumia Delivery signals both ambition and prudence. It represents a step toward financial independence, resilience in the face of continental challenges, and a reaffirmation of the company’s core value proposition in Africa’s digital economy.
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