NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, August 15, 2019

By Mudiwa Gavaza

Africa’s largest e-commerce player, Jumia, has struck up a fruitful partnership with Vivo Energy — owner of Engen-and Shell-branded fuel stations. The result is a distribution network that will tackle the problems it has faced with last-mile delivery.

Prompt delivery in cities with limited addressing systems has been difficult for Jumia. It will now use Vivo’s network of 2,000 fuel station outlets to get around some of those problems. Customers will be able to collect orders and pay for them at a fuel station.

That relationship will begin in Kenya, Morocco, Senegal and Ivory Coast before it is extended elsewhere. Jumia has a presence in 14 African countries, while Vivo operates in 23.

Nigeria-based Jumia is essentially a marketplace with external sellers, which it connects to consumers of goods such as electronics and fashion.

Photo courtesy of Jan Truter.