Jumia Technologies AG is expanding its online food delivery to Egypt as the e-commerce giant seeks to grow beyond its main market of trading phones and electronics, the company announced.
At the launch of the service in Egypt, South Africa will be the only country Jumia is active in where it doesn’t offer food delivery. The company doesn’t have immediate plans to launch there, a spokesman said.
Jumia’s restaurant-food business allows consumers to use a dedicated app to get meals from restaurants delivered to them.
Currently, the food service is available in nine other markets in Africa where Jumia has operations, including Nigeria and Ghana. The food app also facilitates orders from grocery stores, according to a description of it.
“The e-commerce company focused on Africa is planning to launch the service during the first quarter with hundreds of participating restaurants. It will face competition to win over consumers and restaurant operators from similar offerings in the market, which include the Talabat and Elmenus platforms.Hesham Safwat, Jumia’s chief executive for the Egyptian market, said
Last May, Uber Technologies Inc. ceased offering its Eats delivery service in Egypt, according to a statement at the time. The company still offers rides in the country. In developed markets, demand for food delivery has grown during the Covid-19 pandemic, which has curtailed the ability of restaurants to seat consumers in indoor dining rooms.
Food makes up 20% of overall transactions on the platform and is growing quickly. The company is expanding the service into Egypt, where there is a gap in the market following the exit of Uber Eats.co-Chief Executive Officer Sacha Poignonnec said in an interview.
Jumia has been pushing to show it can generate profits, in part by focusing its main digital marketplace on more everyday products, including consumer goods and health items.
The company is also trying to expand beyond some of the urban centers in the countries where it is active, including in Egypt. In December, Jumia and Egypt’s postal service struck an agreement that allows Jumia to create pick-up locations for orders at locations in rural areas, according to Mr. Safwat.
Source: Jumia Group