Jumia Launches Integrated Warehouse in Kenya to Improve Logistics Operations
Nigeria and Africa’s leading e-commerce store Jumia, has launched an integrated warehouse and logistics network facility in Nairobi to improve operations in Kenya
Nigeria and Africa’s leading e-commerce store Jumia, has launched an integrated warehouse and logistics network facility in Nairobi to improve operations in Kenya.
This new warehouse will transform Jumia’s logistics operations by ensuring faster product delivery and subsequently improving customers’ shopping experience.
The 11,000-metres squared warehouse and network facility is strategically positioned and centrally located along Mombasa road, which is closer to the airport as well as the city center, according to the company.
It allows Jumia to leverage on the new Nairobi Expressway to enhance delivery time and improve efficiency. Because of the proximity, the newly built warehouse will eliminate the need to transport items from warehouses to sorting centers, reducing the operational cost and gas emissions of first-mile deliveries.
Speaking on the newly launched warehouse, the CEO of Jumia Kenya Juan Seco stated that the facility will enable the company to be more efficient and meet future needs as the company grows.
In his words, “The new integrated facility has enabled us to converge our multiple warehouses and network operations under one roof.
“This will help us to improve our fulfilment operations to be more efficient and scalable thus taking care of our future needs as the business continues to grow. We shall be able to offer more products across different categories and deliver them faster to our consumers”.
Jumia’sintegrated facility also provides improved working conditions for employees, such as more workspace and a more convenient location in terms of accessibility.
Speaking on how the facility will improve Jumia’s sustainability practices, Jumia Services Country Manager, Ankur Agarwal, said: “The convergence of our operations has helped us to reduce up to 15 truck trips per day, enabling us to reduce carbon emissions significantly. We will continue to look for opportunities to contribute positively to the environment.”
Amazon to Layoff More Employees as It Navigates The Uncertain Economy
E-commerce giant Amazon has announced plans to lay off more of its workforce as it seeks to navigate the current uncertain economy.
The company’s Chief Executive Officer Andy Jassy disclosed this in a company memo seen by Investors King. According to the memo, the layoffs would occur in the coming weeks and will mostly affect Amazon Web Services (AWS), People Experience and Technology Solutions (PXT), Advertising, and Twitch live streaming service group.
The memo reads,
“As we have just concluded the second phase of our operating plan (”OP2”) this past week, I’m writing to share that we intend to eliminate about 9,000 more positions in the next few weeks mostly in AWS, PXT, Advertising, and Twitch. This was a difficult decision, but one that we think is best for the company in the long run. As part of our annual planning process, leaders across the company work with their teams to decide what investments they want to make for the future, prioritizing what matters most to customers and the long-term health of our businesses.
“For several years leading up to this one, most of our businesses added a significant amount of headcount. This made sense given what was happening in our businesses and the economy as a whole. However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount”.
Jassy further added that these role reductions were not announced with the ones that happened months ago, stating that some teams were not done with their analyses in the late fall, and rather than rush through assessments without the appropriate diligence, the company chose to share it latest decision with the team members to keep them updated on the recent happenings.
The recent job cuts at Amazon would mark the largest round of layoffs in the company’s history, adding to the 18,000 employees that were laid off in January.
Investors King understands that the e-commerce giant doubled its hiring during the covid-19 pandemic to meet demand from customers that were increasingly buying stuff from their online store following the lockdown restriction. But as the pandemic eased, there was a significant slowdown in demand which forced Amazon to pause its warehouse expansion.
Amazon’s latest second round of layoff follows a similar move by Facebook parent company Meta after the social media giant which is on a laying-off spree announced plans to cut extra 10,000 jobs this year and instituted a hiring freeze, having already announced 11,000 job cuts in November last year.
Following the incessant layoff of workers in the tech industry, reports disclose that tech firms laid off more than 150, 000 workers globally, with further 139,000 layoffs already announced in 2023.
B2B E-Commerce Startup Alerzo LayOff 15% of Its Workforce
This is the startup’s second round of layoff in seven months after it laid off hundreds of employees in August and September 2022
B2B e-commerce retail startup based in Ibadan, Nigeria, Alerzo has laid off 15% of its workforce.
This is the startup’s second round of layoff in seven months after it laid off hundreds of employees in August and September 2022. According to Alerzo, the first round of layoffs was performance-related which involved digitizing some roles, including developing an internal ERP.
The recent round of layoffs carried out was due to a profitability push, impacting 15% of its full-time employees across various departments, which saw at least 400 people impacted. Also, one of the reasons Alerzo gave for its recent layoffs was post-election uncertainty.
The company stated that while it was prepared for a slowdown in business due to the elections, currency scarcity presented a twofold blow.
The company said in a statement, “Given previous market dynamics, we hired very aggressively during the past couple of years to fuel quick growth and expansion across the country. This does not align now with the economic environment today, so we, unfortunately, had to make changes to our business to be more focused on pursuing strong unit economics.
“Despite these challenges, we remain committed to our mission and are confident that this restructuring will enable us to better serve our customers and pursue sustainable growth. We are grateful for the hard work and dedication of all of these employees.”
The startup further stated that it will pay out all contractual notice periods and provide additional severance, counseling services, and HMO coverage until the end of 2023 for affected employees. Currently, Alerzo says it wants to restructure and reduce payroll to increase profits.
As part of the new round of layoffs, the startup is reportedly reducing its business footprint and will now close 14 warehouses across the country. The startup believes it can accelerate its path to break even more quickly and reach profitability by the third quarter (Q3) this year, with the help of the payment licenses it has acquired, which will significantly aid the digitization of its merchant base, Investors King understands.
Alerzo is one of the innovative Business-to-Business e-commerce platforms deploying technology to reinvent the distribution value chain in the informal retail sector. In 2022, the company’s CEO Adewale Opaleye disclosed that the startup has improved the business fortune of over 80,000 informal retailers across the country.
COMESA Holds Jumia Accountable for Third-party Goods Sold on its Platform
Jumia, Africa’s largest e-commerce platform, has been notified by the Common Markets for Eastern and Southern Africa (COMESA) that it will be held accountable for goods sold by third-party merchants on its platform.
The regional economic community in Africa has compelled Jumia to review its clauses and disclaimer and amend its terms and conditions. This means that Jumia will have to recall any defective or unsafe products sold by third-party agents and will be held responsible when customers cannot get a refund or replacement from vendors.
COMESA’s statement said that Jumia had disassociated itself from the transaction, even though the consumer deals only with Jumia, as it is the one that receives the orders, payments, and delivers on behalf of the seller.
The watchdog required Jumia to indicate clearly where it is the seller and amend the terms to show that it is liable for the products sold. If a third party is involved, the e-commerce site will provide access to a sale agreement between the seller for the buyer to review and accept the terms before buying the goods.
Jumia will also ensure the accuracy of the information on sellers and products posted on its platform. If a person is affected by the inaccuracy of the information published on the platform, they can return the product to the extent that it is affected by the inaccurate information that was bought through the platform.
The commission’s decision is aimed at protecting consumers and ensuring that they have a legitimate expectation that Jumia should have adequate terms and conditions for engaging sellers.
In response, Jumia said that it has fully adhered to the recommendations provided by the COMESA Competition Commission and will continue to work closely with them to ensure that its policies are even more protective for its customers.
Jumia, launched in 2012, is the leading online marketplace in Africa, with the highest number of monthly visits. Nigeria, Jumia’s home market, accounted for the majority of the visits, around 31% of the total, as of 2023. Morocco and Egypt followed, with shares of 17% and 14%, respectively.
This move by COMESA is a significant step towards ensuring that e-commerce platforms operating in Africa take responsibility for the products sold on their platform. It will go a long way in protecting consumers’ rights and ensuring that they are not exploited by third-party sellers.
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