Jumia Plans Cutting Logistic Costs Using Electric Vehicles

Jumia Kenya has plans underway to cut its logistic expenditure by converting one-third of its delivery fleet to electric vehicles. The plan, estimated to be effective within six months, not only aims to reduce the firm’s logistics costs by 30-40% but also targeting cutting consumer prices by 3%, according to CEO Vinod Goel.

The e-commerce firm is currently piloting Electric Vehicle (EV) tuk-tuks as part of its sustainability and cost-reduction strategy. The initiative comes as Jumia reports a threefold increase in orders from rural Kenya and towns outside Nairobi, leading to 80 new pickup locations beyond the capital.

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Coming behind Nigeria and Ivory Coast, Kenya, is currently the third-largest market for Jumia. It had 4,193 EVs at the start of last year up 295.9% from December 2023.

The company, which operates through 20,000 agents across 300 Kenyan towns, plans to add 100 more pickup locations this year while expanding its EV fleet to enhance operational efficiency and environmental sustainability.