Jumia Technologies eyes free shipping, logistics service to boost income

Jumia Technologies AG

23/02/2022 15:43

By Duncan Miriri
    NAIROBI, Feb 23 (Reuters) - African e-commerce firm Jumia
Technologies  JMIA.N  will offer more free shipping of goods to
its customers in selected locations to boost usage this year, it
said on Wednesday.
    Jumia, which became the first Africa-focused tech startup on
the New York Stock Exchange when it listed there in 2019, offers
an online market place for vendors and food sellers, as well as
associated services.
    Its adjusted loss before interest, tax, depreciation and
amortisation (EBITDA) widened to $196.7 million last year from
$136.3 million in the prior year. 
    That could widen further to $200-220 million this year, the
company said in its earnings report, as it focuses on ramping up
growth. It has not said when it expects to make a profit. 
    Annual active consumers increased to 8.0 million last year,
a near 17% jump from the previous period, the company said,
while total orders increased by just over a fifth.  
    Consumers were ordering more everyday products from the
platform, Jumia said, helping it to make progress in its aim of
increasing consumer orders of household products like soft
drinks and soap, from a previous focus on electronics.
    The share of fast-moving consumer goods in total merchandise
sales during the period rose to 14% from 9% in the previous
period, Jeremy Hodara, a co-founder and chief executive of
Jumia, told an investor briefing.
    "We are handling more consumers than ever before," he said.
    The firm will increase free shipping of goods to consumers 
by stocking more merchant products in its warehouses so they are
readily available, he said.
    It will also seek new clients for its logistics business,
which already serves firms like Nigerian Bottling Co, Jumia's
management said. 
    Investments into its logistics service will rise to $15-25
million this year, up from $7 million capital expenditure last
year, the management said.  

 (Reporting by Duncan Miriri
Editing by Mark Potter)
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