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Jumia Food Exits Nigeria, Other African Markets

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Jumia, the continent’s leading online retailer, announced that it will close Jumia Food, its food delivery service, by the end of December 2023, in a move that sent shockwaves through the African e-commerce scene.

Jumia Food Exits Nigeria, Other African Markets

This sudden departure leaves a gaping hole in the burgeoning African food delivery market, raising questions about its future and the challenges facing major players.

Francis Dufay, CEO, Jumia cited a clear focus on the company’s core physical goods business and Jumia Pay platform as the reason for the exit.

Despite Jumia Food accounting for 11% of the company’s Gross Merchandise Value, its persistent struggle for profitability proved the tipping point.

He stated, “The more we concentrate on our physical goods business, the more we recognize the substantial opportunities for Jumia to flourish and achieve profitability. Hence, we must make the right decision by directing our management, teams, and capital resources towards seizing this opportunity.”

The news comes as no surprise to industry observers who witnessed Jumia Food’s rollercoaster ride. After a meteoric rise in 2021 with 82% year-over-year growth, the company faced a sharp decline in 2023, attributed to a shift towards profitability and reduced consumer incentives.

This exit is not an isolated incident. Bolt Food, another major player, also announced its withdrawal from Nigeria and South Africa, highlighting the harsh realities of the African food delivery landscape. Economic downturns, high inflation, and fierce competition from entrenched rivals like Uber Eats and Gokada are creating a volatile and unforgiving environment.

“It’s a segment that’s very difficult across the world, with very challenging economics and big losses. It’s also a segment that is extremely competitive across the world and Africa,” Francis Dufay, chief executive officer  told Reuters.

“The economics are tough in this market because the costs are very high and there is plenty of competition so there is downward pressure on the commissions that we make and upward pressure on marketing costs because everyone is fighting for customers.”

However, amidst the doom and gloom, some players are finding success. Barcelona-based Glovo, through strategic partnerships with restaurant chains like Chicken Republic and Shoprite, is carving its niche in Sub-Saharan Africa.

Closer to home, Nigerian startup Chowdeck celebrates delivering over ₦‎1 billion worth of food in a single month, marking a major milestone in its expansion.

While Chowdeck’s success is promising, it’s crucial to remember Jumia’s scale.

Their $64 million in food delivery GMV for nine months translates to a staggering ₦‎5.7 billion per month, yet profitability remained elusive.

This underscores the universal challenge of achieving profitability in the global food delivery market, with giants like Doordash and Uber struggling despite massive venture capital investments.

With Africa’s food delivery market expected to reach $1.7 billion by 2028, the potential is undeniable. But the path to success is riddled with obstacles. Partnerships, technological innovations, and capital-efficient models like Chowdeck’s might hold the key.

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

E-Business

Firm Shares Tips for Safer Remote Working

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It is holiday season in many parts of the world. These days though, going on holiday does not always mean turning your back on office life – hybrid work cuts both ways.

Today’s widespread connectivity—available at airports, train stations, restaurants, hotels, and most indoor public spaces—makes staying connected easier than ever, with free Wi-Fi in many locations and reliable 4G or 5G coverage elsewhere, helping to facilitate a seamless blend of work and leisure even while on holiday.

This increase in connectivity among travellers has not gone unnoticed by cyber criminals. Kaspersky experts analysed nearly 25,000 free Wi-Fi spots in Paris ahead of the Summer Olympic Games and Paralympic Games. The analysis revealed that almost 25% of these networks had weak or no encryption, making users vulnerable to personal and banking data theft.

Travellers often have their guard down. The unfamiliar surroundings of a new location or a different language can throw up a useful smokescreen for a cyberattack, meaning additional care needs to be taken when logging on. Fortunately, a few smart tools and habits can help you stay protected while enjoying the flexibility of remote work.

Use a VPN for secure connections

A VPN is one of the most effective ways to safeguard users’ online activity, especially when working from unfamiliar locations. By encrypting Internet traffic, a VPN ensures that hackers can’t intercept sensitive data like login credentials or financial details. This is particularly important when accessing work emails or company files on public Wi-Fi, where cybercriminals often lurk.

Switch to an eSIM for reliable, secure mobile data

Another useful digital tool that provides a seamless way to stay connected using local mobile networks with no physical SIM card required is the eSIM. This is a game-changer for international travellers who want to avoid sky-high roaming charges or the hassle of hunting down temporary SIM cards in foreign countries.

With an eSIM, a user can download a local data plan before you even arrive at your destination, ensuring instant connectivity the moment you land. This eliminates the need to rely on unsecured Wi-Fi hotspots, significantly reducing your exposure to cyber threats.

Plus, many eSIM providers allow you to manage multiple profiles on a single device, making it easy to switch between work and personal data plans without juggling multiple phones.

Services like Kaspersky eSIM Store enables users to purchase and activate data plans in advance, track usage and top up as needed, all from a single app.

Enable two-factor authentication (2FA)

When travelling, people often leave devices unattended. To protect against unwanted people logging in, travellers should ensure two-factor authentication (2FA) is enabled on all critical accounts and that passwords are used on all devices.

Final tips for a secure workation

Even with a VPN, eSIM and 2FA in place, your devices still need strong defenses against malware, phishing scams and ransomware. Cybercriminals often target remote workers who may let their guard down while travelling, making real-time protection essential.

Modern antivirus software does more than just scan for viruses, it actively blocks malicious downloads, warns you about phishing attempts and even secures your passwords and financial data.

For the most robust security, consider a solution like Kaspersky Premium, which combines antivirus protection, a VPN and password management into a single, easy-to-use package.

By combining a VPN, eSIM and strong antivirus, you can work from anywhere with confidence, whether you’re sending emails from a poolside or joining a video call from a festival tent.

 


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Zequence Digital Boss Calls for Strong IP Laws Enforcement, to Protect Nigeria’s Software Sector

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Mr Adeoye Oludamilola, managing director, Zequence Digital, a digital agency,  has said strong enforcement of Intellectual Property (IP) laws , protection of Nigeria’s software industry against piracy will encourage innovation and investment.

Zequence Digital Boss Calls for Strong IP Laws Enforcement, to Protect Nigeria’s Software Sector

Adeoye told reporters lately in Lagos that software piracy and the unauthorised use of proprietary technology are widespread in the country.

According to report Intellectual Property (IP) laws in software refers to the legal rights that protect the creations of the mind used in software development.

These rights, which include copyrights, patents, trade secrets, and trademarks, grant developers exclusive control over their software and related assets, preventing unauthorised use or reproduction.

Adeoye said that many startups do not protect their innovations, due to a lack of knowledge and the cumbersome legal processes involved.

“IP registration and litigation are expensive and time-consuming, which further discourages developers from protecting their work,” Adeoye said.

He added that the lack of awareness among developers about their IP rights contributed to the problem.

To address these challenges, Adeoye stressed the need for the formation of an IP Protection Consortium, comprising tech firms, legal experts, and regulators, to advocate for stronger IP enforcement.

He also suggested collaborating with legal tech startups to create simplified platforms for fast-tracked IP registration.

The managing director further called for joint initiatives between legal bodies and tech communities to launch IP rights education campaigns.

This, he said, would equip developers with the knowledge they needed to protect their innovations and grow their businesses.

Adeoye emphasised the need for the government and stakeholders to create an ecosystem for development and inclusivity by proactively engaging with regulators.

According to him, this will help ensure that policies are created with the input of concerned agencies and industry experts.

 

 


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PalmPay Partners AXA Mansard Health to Make Digital Insurance Accessible, Affordable

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L-r: Oluwatoyin Alao, Head, Emerging Customers & Project Management, AXA Mansard Insurance Plc; Tope Adeniyi, CEO AXA Mansard Health Limited; Habib Kowontan, Head of Wealth Product, PalmPay; Jumoke Odunlami, Chief Distribution Officer, AXA Mansard Insurance Plc; Olorunfemi Hanson, Head of Marketing & Communications, PalmPay.
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PalmPay, a leading fintech platform and full-stack digital neobank for emerging markets, has partnered with Nigeria’s biggest Health Insurance Company, AXA Mansard Health a member of the globally trusted AXA Group, to provide millions of Nigerians with affordable, accessible digital health insurance.

This strategic partnership enables PalmPay users to seamlessly access a range of health insurance packages from AXA Mansard directly within the PalmPay app. With plans starting as low as N500 per month, users can now choose from flexible insurance options tailored to fit their everyday needs.

The plans are designed to meet a wide range of needs; for example, the AXA Digital Health plan offers access to telemedicine consultations with doctors, N5,000 worth of medications, and up to N40,000 in surgical coverage. Users can also opt for the AXA Mansard MicroHealth plan at N1,000 per month, which provides unlimited diagnostic tests and funeral benefits. Additionally, the AXA Mansard Accident plan, available for N500 monthly, offers comprehensive death cover for both accidental and non-accidental cases.

Speaking on the partnership, Habib Kowontan, Head of Wealth Product at PalmPay, said: “Insurance is a key pillar of financial security, yet millions of Nigerians remain underserved. Our partnership with AXA Mansard Health breaks down long-standing barriers by placing reliable and affordable insurance solutions right at our users’ fingertips.”

In her remarks, Jumoke Odunlami, Chief Distribution Officer, AXA Mansard Insurance said that the partnership with Palmpay presents the AXA with another opportunity to improve health and productivity of Nigerians. “Through partnerships like this, we are covering over 1.8 million Nigerians and ensuring that healthcare is accessible, available and affordable.

“So we are excited about joining forces with a brand like Palmpay to compliment the range of financial possibilities they offer their customers with health plans. It fits well with our mission and our purpose of acting for human progress by protecting what matters, and we are looking forward to doing even more with Palmpay”, she explained.

This partnership reflects PalmPay’s broader mission to create a more inclusive digital financial ecosystem, one that empowers users to not only manage their money efficiently, but also secure their future.

This partnership reflects PalmPay’s broader mission to create a more inclusive digital financial ecosystem, one that empowers users to not only manage their money efficiently, but also secure their future.


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