Jumia Technologies (NYSE: JMIA) operates a leading e-commerce platform in Africa, which leverages its logistics technologies, Jumia Logistics and JumiaPay, to deliver millions of packages and collect online payments. Shares of the e-commerce and logistics company are rallying 30% through early trading on Monday, April 4, 2022. Over the past three months, Jumia Technologies has seen average daily volume of 4.36 million shares. However, volume of 11.92 million shares or dollar volume of around $148.88 million, has already exchanged hands through early trading.
Shares of Jumia Technologies are gaining after the company announced that it is partnering up with United Parcel Service, Inc. (NYSE: UPS) to expand logistic services across Africa. UPS will be tasked with taking over the late mile logistics to expand its delivery services across the continent. While leveraging Jumia’s existing infrastructure in the region, UPS will be able to offer customers with new delivery solutions, such as door-to-door package delivery and collection.
In addition, the partnership will allow customers to access UPS’s drop-off and pick-up stations across more cities and areas in Africa. The partnership will initially focus on Kenya, Morocco and Nigeria, with Ghana and Ivory Coast set to join in the expansion. After the initial roll-out and expansion, the partnership will expand to the rest of the countries where Jumia maintains operations.
Apoorva Kumar, Senior Vice President Logistics, Jumia Technologies: “At the beginning of our journey, 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. 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 them 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.”
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