UPS, Jumia Partner To Explore 520m Buyers In Nigeria, Others
U.S. package delivery giant, UPS has sealed a partnership deal with Africa’s leading e-commerce platform, Jumia on delivery and pickup services in Nigeria, Kenya and Morocco in a pact that will increase the digital buyers to 520 million by 2025.
Ghana and Ivory Coast are expected to come into the fold at a later day in a cross-continental expansion partnership.
Data from Statista says the number of digital buyers in Africa stood at 281 million in 2020, and this is estimated to increase to 520 million by 2025.
Seven million of this total, are active Jumia users, and Africa’s largest e-commerce platform looks to increase this number by taking over the unexplored huge market in Cairo and Cape Town.
The development is expected to give a push to the underdeveloped retail sector in many parts of Africa, and spur online sales.
Statistically in Africa, one store supplies 67,000 people, whereas, in the U.S., the ratio is 1 to 1,000. At the same time, however, more than 550 million Africans out of a total of 1.4 billion use the Internet via their smartphones.
Jumia’s French co-founders, former McKinsey managers, Sacha Poignonne and Jeremy Hodara said that offering African consumers easy online access to ordering items such as apparel, smartphones, electronics, homeware, and consumer packaged goods, beauty, perfumes and more, was a smart move.
According to figures, currently, a transaction takes place every two seconds on the company’s online platform, where more than 100,000 active sellers offer their products.