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DHL to Compete With Jumia in E-commerce Space

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  • DHL to Compete With Jumia in E-commerce Space

International courier, shipping and packaging company, DHL Express, announced it would expand DHL Africa eShop service to other African nations.

Since the e-commerce app was launched in April, shoppers in 11 African countries have been able to shop across 200 U.S. and U.K. retailers with their local bank cards and have their goods delivered to them in Africa.

DHL Africa eShop presently operates using MallforAfrica.com’s white label service and Link Commerce but Kenya’s M-Pesa and Nigeria’s Paga power its payment system.

Currently, the e-commerce platform operates in Nigeria, Kenya, South Africa, Rwanda, Ghana, etc.

But because of the success recorded in the last seven weeks, the company has decided to extend its operations to more African nations just like Jumia, Africa’s largest e-commerce platform.

“The uptake and usage of this platform over the past seven weeks has been incredible, with exponential growth in subscribers and physical orders,” said Hennie Heymans, CEO of DHL Express sub-Saharan Africa.

The CEO said the e-commerce app will now be available in nine more countries in Africa. “Based on this rapid growth and the positive feedback that we have received from the market, DHL Express has decided to proceed to the next phase of the rollout as quickly as possible. The platform is now live for consumers in Cameroon, Democratic Republic of Congo, Côte d’Ivoire, Gabon, The Gambia, Madagascar, Mozambique, Tanzania and Zambia.”

Jumia Competition

Since Jumia listed on the New York Stock Exchange market in April and immediately rose by over 200 percent, investors and businesses have been looking to tap into seemingly untapped huge African e-commerce industry with over 240 million internet consumers.

This was after a report by Mckinsey Global Institute revealed that African e-commerce industry could worth $75 billion by 2025 in key economies on the continent.

While Jumia continues to expand operations and currently in 14 countries, infrastructural limitations and low operating capital remained a huge challenge.

DHL, however, has an edge with its broad logistic channel and decade of experience on the continent. Meaning, DHL has the brand reach to network, connect customers to more global brands and deliver quality goods faster and better. Eliminating some of the challenges currently hurting Jumia growth.

According to Heymans, “As the global leader in express logistics, DHL is well positioned to connect African consumers with these exciting global brands. We are committed to driving e-commerce growth on the continent on all fronts. We work with thousands of e-commerce brands in Africa and help them to reach global customers, and now with our DHL Africa eShop, we also connect African consumer to global brands.”

Again, while Jumia is building infrastructure from scratch, DHL is leveraging on its huge logistics across the continent and has already launched in 11 countries and just announced 9 more countries to take the total number of operating markets to 20 within just two months.

Jumia was accused of fraud by Citron Research in May, plunging it’s stock’s value by more than 50 percent from $46 to about $20, currently trading at $24.23 per share.

With over $1 billion in debt, Jumia needs to grow quick by leveraging on its local reach to compete with DHL Africa eShop.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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Jeff Bezos Sets a New Record as Net Worth Hits $172bn

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Jeff Bezos

Jeff Bezos Breaks His Own Record, Now Worth $172bn

Jeff Bezos, the Chief Executive Officer and Founder of Amazon Inc, on Wednesday broke his own record to set a new all-time record of $172 billion net worth.

Bezos’s previous record was $167.7 billion attained in September 2018. However, the billionaire broke the record on Wednesday after Amazon shares gained 4.4 percent to close at $2,878.80 per share.

Jeff Bezos companies

This is despite the billionaire parting with 19.7 million Amazon shares in July 2019 as part of his divorce settlement to his wife, Mackenzie Bezos.

Mackenzie Bezos’s 19.7 million shares now worth around $56.9 billion, making her the second richest woman and the thirteenth richest person in the world.

Jeff Bezos’s net worth has now risen by $57.4 billion from the year-to-date, according to Bloomberg Billionaire Index.

Jeff bezos Net worth

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Opay Pauses Some Business Operations as COVID-19 Bites

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Opay halts business units

OPay Halts Some Business Units Amid COVID-19 Pandemic

Opay, a seamless mobile money service provider, has announced it would be putting some of its business units on hold as COVID-19 pandemic bites.

In a statement released by the Chinese owned mobile money start-up on its official twitter page @OPay_NG, the company said “We can confirm that some of our business units including the ride-hailing services, ORide, OCar as well as our logistics service OExpress will be put on pause.”

This, it said was largely due to the tough business environment brought about by COVID-19 pandemic, the lockdown and government ban of motorbikes in Lagos.

The statement read “Globally, ride-sharing businesses have been heavily impacted by the pandemic. But several months ago, foreseeing this issue, OPay had already taken preemptive steps to restructure our business focus away from rides. It is worth to note that this final restructuring has minimal impact on OPay as a whole business.”

“It is important to clarify that ride-sharing had always been only one part, and not a major part of OPay’s diversified business in Nigeria. In fact, OPay had been investing more and seeing accelerated growth in its commitment to Nigeria’s financial and technology inclusion.

“During the pandemic, we have seen continued demand for our offline mobile money agency, and online digital payment, which remains the core of our business.

“From January to April 2020 for example, we witnessed a 44% growth of offline and online transaction value even in the midst of pandemic and lockdown. This is a testament to the high demand for flexible and easy financial services by Nigerians. OPay remains one of the most well-funded and profitable mobile money platforms in Nigeria, and we will continue to do more for our customers.”

Below is the company’s official statement as published on Twitter.

Opay Statement

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Facebook, Google Earn 80% of Annual Digital Ads Spend – Report

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facebook and google ads revenue uk

Facebook, Google Earn 80% of the £14bn Spent on Digital Ads in 2019

A recent report from the United Kingdom’s competition watchdog has shown that Facebook and Google earned 80 percent of all the money spent by advertisers on digital platforms in 2019.

In the 440-page report, the Competition and Markets Authority (CMA), UK said Google and Facebook market positions are having a “profound impact” on newspapers that now receive almost 40 percent of all visits to their sites through the two platforms.

“This dependency potentially squeezes their share of digital advertising revenues, undermining their ability to produce valuable content,” the watchdog said.

This is coming two weeks after Investors King called on the Federal Government of Nigeria to protect Small and Medium businesses against Facebook and Google activities or watch the nation’s SMEs die. Investors King had posited that “Nigerian startups can not compete with Facebook and the recent tax announced by the Federal Government through the ministry of finance would not be enough to stop these giant tech companies from taking advantage of Nigeria’s young growing market.

According to the CMA report, out of the £14 billion spent on digital advertising in the United Kingdom in 2019, Google with more than 90 percent share of market search earned £7.3 billon while Facebook with more than 50 percent of display market earned £5.5 billion. Representing 80 percent of the total digital ads spent in 2019.

While the report admits that the two platforms help small businesses reach customers and are valued by users, it also said they have “developed such unassailable market positions that rivals can no longer compete on equal terms”.

Andrea Coscelli, Chief Executive at CMA, said: “What we have found is concerning – if the market power of these firms goes unchecked, people and businesses will lose out.

“People will carry on handing over more of their personal data than necessary, a lack of competition could mean higher prices for goods and services bought online and we could all miss out on the benefits of the next innovative digital platform.

“Our clear recommendation to government is that a new pro-competitive regulatory regime be established to address the concerns we have identified and regulate a sector which is central to all our lives.”

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