E-Commerce firms in Kenya not ready for competition from Amazon and Alibaba
SEE ALSO :Amazon boss in record-breaking divorce“It remains to be seen whether local African e-commerce companies such as Takealot (South Africa), Kilimall (Kenya), Konga (Nigeria) as well as Jumia can build sufficient scale to resist the global majors when they do arrive.” However, the World Bank lauded the contribution of local e-commerce firms such as Jumia to the penetration of online shopping in Kenya through the adoption of unique payment methods. “The company (Jumia) also offers the facility to pay through mobile money. In addition, it has launched offline “experiential centres” to help consumers overcome their doubts about the look and feel of the products they are purchasing. It also noted that despite the lack of formal street addresses that has been a major constraint on home delivery in many African cities or detailed mapping, Jumia has developed its own maps for delivery. The local e-commerce fraternity was upset after an online classifieds firm OLX shut down its Kenyan operations rendering over 31 employees jobless.
SEE ALSO :Jumia surges on US debut after listingThe South African e-commerce company said yesterday it would also close its Nigerian office - a blow to the growth of e-commerce in the country. The unveiling of Safaricom’s e-commerce platform Masoko has not done much to increase the nascent online business.
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