The rogue online shopping firm Jumia is struggling.
The company which floated an IPO at the New York Stock Exchange (NYSE) in April was touted as an African e-Commerce giant is now facing an uncertain future in the continent it is supposed to be flourishing in.
Jumia’s founding story is perfect, it was first established in Lagos, Nigeria, however, its ownership elicited mixed after it emerged, as with most African Tech Startup, that western hands are behind the company, ‘selling it to their people as an African success story’.
Dear @sachapoignonnec:
This tagline “the 1st African Tech Startup” of @Jumia_Group is a lie & this misrepresentation is deemed fraudulent.
You are a European Multinational penetrating the African market. Please correct your narrative. Do the right thing.
Source: #Wakanda pic.twitter.com/1sZINw28Hy
— Issam Chleuh (@issamchleuh) April 15, 2019
Anyways, starting in Nigeria, the company created many of the components for its digital sales operations. This includes its JumiaPay payment platform and a delivery service of trucks and motorbikes that have become ubiquitous with the Lagos landscape. Jumia has extended this infrastructure as an e-commerce fulfillment product called Jumia Services, as reported by TechCrunch.
Expansion
Jumia has also opened itself up to Africa’s traders by allowing local merchants to harness Jumia to sell online. The company which has more than 80,000 active sellers moved to other African countries and opened offices. Jumia came to Kenya in May 2013, its story has not been a rosy one as there have been serious complaints about the business practices.
Articles carried on this platform, apart for the usual mix-up of items ordered and item delivers has recounted how Jumia mistreats buyers, for example, a Kenyan buyer reported that she ordered a phone for over Ksh16,000 which she worked well for a few hours then malfunctioned. Jumia refused to take the phone back.
Jumia poor customer service has a Guinness World Record,
Kenya is a tough market and companies like Jumia might be using underhand tactics, selling useless or fake wares to unsuspecting Kenyans and then refusing to take the items back and you know what, at least they keep the money. This is insane and should stop.
The business model of Jumia is unsustainable.
After closing the Cameroon and Tanzanian operations, Jumia might soon go belly up in Kenya.
Jumia is struggling, cannot fit in this market too.
In Cameroon, the company shut down operations due to what it termed as ‘unfavourable conditions on their path to achieving success’.
“For this reason, we made the difficult decision to suspend our e-commerce operations in Cameroon. It is more important now than ever to put our focus and resources where they can bring the best value and help us thrive. While our operations in Cameroon provided many opportunities for customers and vendors, this decision will help us achieve greater success in the future,” Abdesslam Benzitouni, group head of communication told Quartz Africa by e-mail.
In Tanzania, the firm stated that following a review of its path to success, it has made a difficult decision to close their operations. The management agreed that Tanzania has potential, however, ‘it has decided to focus their operations in other markets’.
Things are tough as the company has been reduced to selling mostly electronics.
Jumia has also been losing the rights to sell merchandise for some companies such as the Chinese phone maker Infinix.
Infinix now has their own online platform for phone sales.
MORE:
- Conmanship At Jumia Online Store
- Exposed: New Ways Jumia Sales Agents Use To Con Clients
- Africa Must Stand and Unite Against ‘Racist’ Companies Like JUMIA.
