International logistics firm, United Parcel Services, UPS, has entered into a partnership with Jumia to access the e-commerce firm’s delivery infrastructure across many African countries.
https://twitter.com/UPS/status/1510980625037205515?s=20&t=LglfUcaJD7mO_1wGEszyNA
Bloomberg reports that the deal will enable the Berlin-based firm (Jumia) to make use of UPS’s network across 220 countries and territories to help users deliver their packages
Jumia’s Senior Vice-President of Logistics, Apoorva Kumar revealed that the partnership would help address one of the biggest challenges that the company faced as a start-up.
“at the beginning of our journey – launch of the e-commerce platform 10 years ago, logistics infrastructure was one of the most challenging aspects of our operating environment. This challenge was a catalyst for us to build an unparalleled logistics platform in Africa offering our sellers and consumers reliable, convenient and cost-effective delivery services.” Kumar said.
He added that “today, we are helping other businesses overcome these infrastructure challenges by giving them access to our logistics platform. We are delighted and humbled by the opportunity to partner up with UPS, a global logistics leader, to offer the last mile solutions in Africa. We view this as a validation of the strength of our logistics platform as well as an incentive to double down on our efforts to further enhance our services and build a world-class logistics business in Africa.”
While the companies didn’t provide financial terms of the deal, Bloomberg says it would help Jumia become a $1.2 billion company from $934.6 million on Friday. UPS shares fell 1.2%.
Gregory Goba Ble, UPS vice president of engineering and operations for Indian subcontinent, Middle East, and Africa said, “UPS’s asset-light approach, like the Jumia partnership, offers a pathway for businesses to quickly and reliably connect to new customers around the world through our global network, potentially accelerating their revenue growth.”