Fast Consumables delivery through Jumia's Quick Commerce Offering

To meet growing customer demand for e-commerce on groceries and everyday products,, Jumia has transformed our services in new and exciting ways. Examples of this innovation can be seen via our next day delivery offering on our Jumia app and our foray into quick commerce via Jumia Food Mart on the Jumia Food app.

As part of our “Jumia Everyday” offering, we provide customers with rapid delivery of their favorite products. Jumia Food Mart is our quick commerce offering and it is underpinned by micro-fulfillment centers (small warehouses in neighborhoods), which are supported by three major value propositions:

• A core basket of 1,500-4,000 products, including fresh produce, dairy and frozen foods.

• Friendly prices in line with supermarket pricing (excluding promotional offers) that are cheaper than other convenience alternatives such as minimarts and kiosks.

• The fastest and most reliable delivery option, with a promise under 20 minutes.

Challenges faced in implementing Jumia Food Mart

Jumia has 10 years of expertise in warehousing, logistics and delivery, but Jumia Food Mart was an exciting new challenge for our teams as we transitioned from our normal delivery operations to a quick commerce set-up (20 minute delivery). The key challenges included:

• Identifying and securing strategic locations for our micro-fulfillment centers - allowing us to put the product source next to the customers

• Identifying the right number of delivery agents to be positioned at the store to enable to rapid delivery in less than 20 minutes

• Running the micro-fulfillment centers was a challenge as we had to adapt our warehousing knowledge to optimize for speed while also handling fresh and frozen products for the first time

What we have learned from the Jumia Food Mart pilot

• How to maximize cost efficiency by optimizing capex, store operations & labor, procurement, and number of delivery agents needed to maximize efficiency and reduce cost

• The Jumia Food Mart pilot showed us how many people desire a rapid grocery delivery service. Thanks to our extended opening hours, customers are more at ease knowing they can make several orders over a day. Subsequently, we get insight into the possible level of demand when customers don’t have to worry about price, variety and convenience.

• Our commercial and logistics teams have also learned a lot about handling fresh produce such as fruits and vegetables. With maximum attention to temperature and humidity conditions in storage units, packaging textures, and other factors, we can ensure consistent quality with every order.

Our achievements so far

• During the pilot phase of Jumia Food Mart, we established over 30 micro-fulfillment centers across eight countries.

• We delivered 90% of the orders fulfilled via these centers in under 20 minutes.

As we continue to grow and learn from our consumers, we will expand our footprint and our basket of goods to meet our customers' most pressing needs. Customers who choose Jumia Food Mart never have to worry about delays, exorbitant delivery fees, limited product options, or lapses in quality.

***********************************

Zach Dyce Head of Quick-Commerce, Jumia Group

Zach has been our head of quick commerce since the project kicked off last year, transitioning from his role as Chief of Staff in Jumia Kenya. Zach handles all aspects of the project and oversees the launch and growth across all of our countries. Originally from the US, Zach studied finance at Florida State University before starting his career in Tech Investment Banking at Jefferies in New York City. After starting his career at Jefferies, he transitioned to management consulting at BCG in New York where he worked most recently before joining Jumia in Kenya.