Jumia’s race to profitability takes it to Africa’s rural markets
Jumia, a pan-African e-commerce platform, is shifting its focus to rural markets in Africa to drive profitability. The Nigerian arm of Jumia is targeting rural areas in the country, aiming to tap into the untapped e-commerce potential of these regions. The company has established pick-up stations and fulfillment centers in towns such as Modaleke, Nkpor, Owo, Offa, and Keffi. By expanding into rural markets, Jumia aims to increase its customer base and boost gross merchandise value (GMV), positioning itself for profitability. Jumia is leveraging its team of independent sales consultants, known as JForce, to conduct on-the-ground campaigns and educate rural customers about the benefits of e-commerce. The strategy is similar to successful companies like Copia Global, which recruits small business owners as agents to deliver goods to customers in their regions. Jumia plans to leverage its existing logistics routes and capitalize on areas where e-commerce is less prevalent. While the move may not yield immediate profitability, it is expected to contribute to Jumia's growth and market expansion, particularly in rural and semi-rural areas.
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