Jumia, the leading e-commerce platform in the country, released a new report, “Expanding E-Commerce in Rural Areas in Uganda,” highlighting its successful penetration into underserved regions and success in bringing e-commerce opportunities to rural populations across the country.
The report draws on Jumia’s 2022 non-financial data and provides insights into its expansion strategies to rural communities in Uganda.
As of December 2022, the e-commerce platform operated 99 Pick-Up Stations (PUS) across 25 towns, including Arua, Lira, Gulu, Mbarara, Bushenyi, Kabale, Fort Portal, Jinja, Mbale and more.
Jumia has succeeded in its strategy of providing a shopping solution and meeting the needs of rural consumers. Its collaboration with local logistics partners ensures streamlined supply chain operations, which enables the company to cater to the diverse demands of these underserved markets.
The report further highlights the pivotal role that JForce, a network of over 7,000 youthful independent sales consultants, plays in educating consumers about Jumia’s offerings and driving awareness through local and offline marketing channels, hence supporting awareness about how e-commerce works.
Shakib Nsubuga, Head of Expansion and Offline Sales, emphasized the importance of tapping into the offline sales team’s capabilities to bridge the gap between online and offline markets.
“JForce agents have been able to create key robust networks within communities across the country that would have been more difficult for us to achieve otherwise. These networks provide us with insights on different market trends and analysis, that inform business decisions that allow us to remain competitive and relevant.”
The company’s Chief Executive Officer, Vinod Goel, reiterated that this strategic focus on rural areas aligns with the platform’s mission to make e-commerce accessible to everyone across borders, especially now that the company is celebrating 11 years of operation.
“Our mission is to transform lives through technology and there is no better way to achieve this than to reach the population that has a real need for convenience and access to quality and affordable products which they equally deserve to access just as the urban populations do. 67% of rural consumers that shopped with Jumia Uganda re-ordered with the platform, a testament to the appreciation of the convenience, product quality and trust amassed over time,” said Vinod Goel, CEO of Jumia Uganda.
Jumia has also embarked on partnerships with top brands like Blue Flame and Saachi which take advantage of the JForce program to engage offline customers through Agent capacity-building initiatives and co-branded activations to provide more cost-effective upcountry market penetration strategies.