Africa's Top Online Retailer Is Going Offline In Search Of Gains

E-commerce has long promised convenience, accessibility, and the transformation of shopping habits across the globe. Yet, for many rural and underserved regions, the barriers to fully embracing online shopping have remained high. These challenges-particularly in Africa-include poor infrastructure, high transportation costs, and limited delivery networks.

However, e-commerce companies are now tapping into a solution that could change the game: pickup stations.

Jumia , often dubbed the Amazon of Africa, is tweaking its strategy in a significant way. After years of focusing on major cities, the e-commerce giant is going brick-and-mortar and targeting rural markets with pickup points, a move designed to reduce delivery costs and bring underserved populations into its fold. As Jumia faces rising competition from rival e-tailers and social commerce and economic pressures , this approach reflects its push to find new growth avenues and get closer to long-elusive profitability.

Pickup stations have become a crucial enabler for expanding e-commerce into rural and semi-urban areas, providing a practical solution to the last-mile delivery problem. Companies like Jumia are embracing this shift, embracing pickup stations to expand their reach while reducing delivery costs and enhancing accessibility.

In Africas rural markets, smaller e-commerce players like Copia Global found significant success using pickup points and agent-led models, though Copia ground to a halt earlier this year amid financial struggles. Other players, such as Kapu and Tusho , with USD 11 M raised between them in 2022, rely on similar models that involve local agents to serve hard-to-reach areas. Jumia is betting that its existing infrastructure and agent network will give it an edge in expanding these rural efforts across its remaining nine markets.