Jumia Launches Jumia Delivery for Third-Party Sellers, Targets Profitability by 2027
African e-commerce leader Jumia has officially opened its logistics network to third-party businesses with the launch of Jumia Delivery, a move aimed at cutting fulfilment costs, boosting revenues, and achieving profitability by 2027
The new service allows social commerce sellers and other third-party businesses to ship packages across Nigeria using Jumia’s extensive logistics infrastructure, which includes 494 pickup stations nationwide. This marks a significant shift in strategy as Jumia begins to serve a segment it once considered direct competition: traders operating solely on social media platforms.
After a successful pilot in Ivory Coast, Jumia Delivery has rolled out in Nigeria and is set to expand to Kenya, Senegal, and Ghana, subject to regulatory approval.
“Local social commerce merchants will always be around, and we are looking at this pool of merchants as an opportunity for Jumia,” said CEO Francis Dufay during the Q1 2025 earnings call on May 8. “We are working to onboard them to our marketplace and help them generate more sales. We are also looking to sell our Jumia Delivery services and generate profits from them.”
COMPETING IN A CROWDED LOGISTICS MARKET
With this move, Jumia enters direct competition with top logistics providers such as DHL, GIG Logistics, Sendbox, Kwik Delivery, and Chowdeck, as well as ride-hailing platforms like Uber, Bolt, and Indrive, which are rapidly expanding their delivery capabilities. Jumia also faces challenges from independent delivery riders, known for offering competitive prices and personalised service to merchants.
However, Jumia’s leadership believes that its existing scale and infrastructure provide a key competitive edge. By allowing more packages per delivery run, the company expects to reduce last-mile delivery costs and optimise fixed logistics expenses such as warehouse operations.
In Q1 2025 alone, Jumia spent $9.4 million on logistics and has been actively implementing cost-reduction measures, including:
A 3% reduction in workforce,
Renegotiation of logistics and tech contracts,
Improved warehouse efficiency
Jumia Delivery is expected to increase operational scale, enhancing unit economics and margin performance.
Investor Confidence on the rise
Following the announcement and positive Q1 earnings, Jumia’s share price jumped from $2.40 to $3.55, reflecting strong investor confidence in the company’s new strategy.
This is a scalable business that extends our value proposition across the digital economy,” the company noted in its report.
Key Takeaways
Jumia Delivery is now open to third-party sellers, including social media merchants
- This move aligns with Jumai’s mission to achieve profitability by 2027
- Jumia will compete with top logistics providers and independent delivery services
- The launch follows broader cost-optimisation efforts across the company.
As Africa’s e-commerce ecosystem continues to evolve, Jumia Delivery positions the company not just as a digital marketplace but also as a logistics enabler for the broader social commerce sector.
