Jumia Is In An Open e-Commerce Battle Royal
Thanks to COVID19, lockdown, and travel restrictions, e-Commerce is on the rise and Africa’s biggest retailer, Jumia, is facing stiff competition from mushrooming startups.
The reason is simple, online deliveries are the new thing.
The U.S.-listed firm is seen as one of the pioneers of internet trading in sub-Saharan Africa, which trails the rest of the world due to challenges including weak internet connections and unreliable addresses.
The fact that most of Jumia’s investors pulled out their money after it’s performance on the New York Stock Exchange since its debut last year in April is another factor causing them to lag. Persistent losses, allegations of corruption in the Nigerian sales force, and a damning short-seller report contributed to an initial share-price slump.
The emergence of the COVID19 was a blessing in disguise as their value has been appreciating. Expanding into food has helped to increase sales and Jumia’s footprint in existing markets.
There is a rapid growth of enterprises doing just that now. Online delivery. This has affected Jumia’s stock value already. Their shares fell 2% to $13.47 on Friday, valuing Jumia at more than $1 billion. The initial public offering price was $14.50.