Jumia and Kaymu, Africa’s leading e-commerce marketplaces, have launched a new joint initiative to provide a fulfillment and delivery platform for online sellers in Africa. Their first goal: create up to 100,000 jobs in logistic services.
Integrating logistics service providers onto a common network
This initiative, AIG Express, is Jumia and Kaymu’s response to the rapid growth of African e-commerce. AIG Express plans to integrate existing logistics providers into a single network that will meet the growing needs of online sellers across the continent.
“We’re currently delivering up to 100,000 packages a day for Jumia and Kaymu, and we expect this number to grow around five times by end of 2015. In order to provide convenient, fast and friendly customer service, we need to quickly scale up the delivery network”, said Indrek Heinloo, who is leading the initiative across Africa.
A positive outlook on entrepreneurship in the Logistics industry
The growth of e-commerce in Africa offers unprecedented opportunities for logistic companies. At the moment, many companies face limitations in technology investments and skill development. This prevents them from meeting current e-commerce standards, which require the capacity to process “cash on delivery” transactions, track packages electronically, as well as mobile equipment to communicate effectively with sellers and customers. AIG Express intends to work closely with local logistics entrepreneurs to fill these gaps by implementing technology and training to handle e-commerce logistics.
“We have developed an approach which will help logistics companies in Africa become as effective as the companies in more developed markets. We provide a common platform that would link all logistics providers and enable serving the demand of online customers. Through consolidation of volumes from e-commerce platforms such as Jumia and Kaymu, we provide a constant stream of business which can help logistics companies to grow. We already have a number of companies incorporated to our network – from established logistics companies with decades of experience to newly created local ventures – several of which have been created by African entrepreneurs specifically on the backbone of Africa Internet Group’s businesses.” said Indrek.
An emerging ecosystem of jobs full of e-commerce opportunities
Presently there are close to 10,000 employees, contractors and sales agents whose primary income comes from the Africa Internet Group.
Sacha Poignonnec, co-CEO Africa Internet Group, said: “When we look at unemployment rates, and when we see the growth of e-commerce, we are optimistic about the opportunities this new industry brings. We believe the ecosystem of jobs that will emerge around e-commerce over the coming decade will provide a lot of opportunities, and logistics services are a key contributor to this”.
Customers value security, friendliness and professionalism
Jumia and Kaymu encourage logistic companies to invest in their team training and improve employee retention.
With less turnover and better efficiency, sellers can benefit from better prices for their deliveries, while customers enjoy better user experience.
“We welcome any and all logistics companies to join the AIG Express network and benefit from the unprecedented entrepreneurial opportunities that e-commerce provides on the continent. As long as the companies are able to provide reliable logistics services in line with our standards, we can link them onto our logistics platform and provide sustainable and growing volumes for their business.” Indrek said
