African online sellers to get logistics upgrade, more jobs

This week, Nigeria’s two largest marketplaces, Jumia and Kaymu, announced a fulfillment and delivery platform joint initiative for Africa. Their goal is to provide online sellers in Africa with a system to deliver their products and create jobs.

The joint initiative is called Africa Internet Group (AIG) Express. AIG itself provides easy-to-use services and solutions across the African internet market and are part of Africa’s startup ecosystem.

Indrek Heinloo, who is leading the initiative, says a larger delivery network needs to be put in place of Africa.

We’re currently delivering up to 100,000 packages a day for Jumia and Kaymu, and we expect this number to grow around five times by the end of 2015. In order to provide convenient, fast and friendly customer service, we need to quickly scale up the delivery network.

With the growth of eCommerce in Africa, many smaller logistics companies lack the needs to compete in the online environment. AIG Express aims to help out those companies by not only facilitating their delivery needs, but include services such as “cash on delivery”, online parcel tracking, and working with them to implement the technology.

We provide a common platform that would link all logistics providers and enable serving the demand of online customers.

We already have a number of companies incorporated to our network – from established logistics companies with decades of experience to newly created local ventures – several of which have been created by African entrepreneurs specifically on the backbone of Africa Internet Group’s businesses.

With this new logistical implementation, AIG hopes to create 100 000 additional jobs. At present their systems consists of close to 10 000 employees, contractors, and sales agents whose sole income is from the company. Co-CEO of AIG, Sacha Poignonnec, says the increase in eCommerce and opportunities should help to stimulate job market growth.

Both companies have said sales can benefit from better efficiency and pricing from the system while logistic companies should invest in their staff to improve employee retention.