E-commerce giant Jumia is pivoting its Kenyan operations toward rural areas of the country, betting on an army of small business owners to tackle the continent’s persistent last-mile logistics challenge without weighing down its balance sheet.
In a report released Monday, Jumia revealed that rural buyers now drive the majority of its volume, with 60% of deliveries heading to secondary towns and remote villages. This marks a significant departure from the urban-centric model that has historically defined African e-commerce, relying instead on a decentralised network where local operators, not corporate fleets, control the final handoff.
The strategy is based on an aggressive “asset-light” model designed to strip out heavy capital expenditures. Of Jumia’s 300-plus pick-up stations, more than 80% are owned and operated by third-party logistics partners. These local entrepreneurs handle storage, handovers, and complex routing, acting as the final links in a nationwide supply chain, while Jumia provides the digital infrastructure and national reach.
“Over 80% of these pick-up stations are owned and operated by third-party logistics providers, reinforcing Jumia’s asset-light model,” the report noted.
The efficiencies of this symbiotic relationship are already materialising. According to the report, delivery windows in rural tiers have dropped to between two and four days, an improvement of up to 48 hours in 2024, signalling that the distribution chain is maturing.
The partners have turned corner shops and community hubs into critical logistics points that big logistics firms typically bypass by using motorcycles and local guides to navigate regions often lacking formal address systems.
Despite this, the model effectively transfers operational risk from the corporate entity to the micro-enterprise. These local operators are the first to absorb the shock of rising fuel prices or infrastructure failures, such as poor road networks.
As rural orders increasingly include bulkier items like televisions and home appliances, a network built on light vehicles and thin working capital faces a significant stress test. Furthermore, Jumia’s introduction of a public parcel-sending service could add strain if volume outpaces local capacity.
“Anyone can now send parcels across Kenya using Jumia’s infrastructure, which includes real-time tracking, hundreds of pick-up points, and a proven delivery engine,” Jumia said in the report. The service costs between KES 160 and KES 1,600 ($1.23-12.34).
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