Competition has been steep for Jumiai, Africa’s largest e-commerce platform, especially from major Chinese companies like Temu and Shein, Jumia is now using the same playbook its Chinese rivals have thrived on: adding Chinese merchants to the seller pool to stay competitive. It is also leveraging the U.S.-China trade war as Chinese merchants look to diversify into African markets.
Dubbed the “Amazon of Africa,” Jumia has been cutting its losses since 2022. The company has exited underperforming businesses such as food delivery across several African markets, and sharpened its focus on physical goods in core markets like Nigeria. In early August, Jumia reported a revenue of $45.6 million — a 25% increase year on year.
[...]