The online delivery mogul is an enabler for growth and efficiency. The COVID-19 pandemic stifled many an industry and the restaurant and food sector took one of the hardest hits. Curfew and social distancing measures, imposed globally reduced the amount of restaurant-goers and even online food deliveries were met with an apprehensive eye and the usual, “but there’s food at home” declaration. Well, Jumia Food not only understands but tackles and continues to raise the bar for their service exponentially. Evident through their 2020 index report.
In the wake of the pandemic, they were quick to respond. Supermarkets were decongested and online deliveries made it easier and safer to navigate this sensitive space. The company donated 100,000 facemasks to aid essential workers across communities in Kenya, as well as, partnered with Shofco Organization to relieve communities and families in Kibera that were vulnerable during the pandemic. This is only the tip of the iceberg.
“We exist to support restaurants”, Sam says. As the restaurant industry took a hard hit and many jobs were on the line, Jumia Food saw it best to adjust and adapt to a more precise and tailored way to orchestrate business. Through several training and protection measures, they ensured that business was running as smoothly as possible, with the given circumstances, both for the consumers and for their partners. The aim was to help many affected restaurants. Riders and partnering restaurants were taken through training measures and use of relevant equipment such as PPE’s, gloves, facemasks and sanitization. To place the cherry on the cake, they rolled out commission reductions and free deliveries, for their partners, in a bid to support and help them grow during this time.
Contactless delivery and cashless payment methods were also deployed, through allowing customers to pay through Mpesa or Jumia Pay, decreasing amount of contact and ensuring safety for both parties. In line with these protective processes, they also included gas deliveries, setting up of cloud kitchens and offering cheap meals, with Bei Poa for about 200Kshs for lower to middle income earners. Ensuring continuance of business and consumer satisfaction.
The report shared several key industry insights that encapsulated the leading growth of online deliveries not just for food but essentials, as well as, key behavioral factors that have come to light since the pandemic. Did you know that the people of Nairobi are massive chicken fans? According to customer cuisine preferences, they love chicken and the city stands as the biggest enthusiast for online food delivery in the whole Africa, exceeding Lagos and Casablanca. They also saw a growing share of orders from independent and local restaurants as they added a particular flare and spice for those who crave a touch of Home food.
“The convenience of having local food to your tastes, in the safety of your home, is important to customers. What local restaurants need is that awareness, affordability measures and the guidance on how to prepare food safely so that customers can trust your brand,” remarks Shreenal Ruparelia, the Chief Commercial Officer, Jumia Food Africa. The company provides this effectively and has seen an increase in independent partnerships and simultaneously, offering a wider variety of selection to consumers.
“We’ve seen a return of the evening meal.”, Sam reports. The curfew extension time has changed the spending behavior in consumers as more were prone to lunch time orders but are now seen to drive down Dinner lane and are enjoying a wide range of evening meal options.
The company has seen since then taken several measures to boost the economy both internally and externally through three main courses of action. Delivery of a better experience through shorter preparation and delivery time, through technology and automation. With up to 95% accuracy in deliveries within a 35-minute range. “We offer quick delivery solutions for restaurants and there is a steady increase in convenience need for people to be driven more towards online delivery.” Mr. Chappatte remarks.
“We want jumia food to be the destination for quick delivery for our customer’s everyday needs”, he remarked, to expound on the second course of action, which is increase in consumer choices for and wider variety of services ranging from food to essentials. This reserves an inclusion for more independent restaurants to provide an amalgam of alternatives for customers. This also extends to easier access to local supermarkets, gas deliveries and pharmacies which also drive the economy forward in more ways than one. Everything you need within range, through a wider scope of efficiency.
The online market spectrum is likely to expand and offer jobs up to 3 million laborers by the year 2025. This is due to a steady increase in smartphone adoption and mobile internet penetration from 40% in 2019, to an estimated 67% by 2025 as Kenya adapts to prevalent digital disruption. Jumia Food plans to extend their horizons, as a third factor, by branching out further throughout the country and expanding the job market.
According to the report, “Kenya’s KES 1.8b (US$17m) online food and beverage market is projected to reach 3.8b (US$35m) by 2024 with revenue expected to show an annual growth rate (CAGR 2020-2024) of 20.1%. The country’s 2.1M (4% user penetration) online consumers is expected to hit 7.1% by 2024.This projection offers the prospect of increased jobs, greater prosperity, reduced hunger and improved capacities for Kenyan farmers and entrepreneurs to integrate into the global economy.” An ideal installation into the progression and innovation of the food industry within the digital economy.
The month of October brings good tidings for all because of the Jumia Food Festival, which happily coincides with World Food Day, to which the company has partnered with various restaurants, supermarkets, pharmacies and essential services to bring to their consumers a diversity of offers and deals not only increasing engagement but also solidify satisfaction. This is not only the way forward but a steady way into the future of the food industry injected by the proverbial digital bug.
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