E-commerce is gaining momentum the world over with platforms such as E-Bay, Amazon and Alibaba turning into billion dollar businesses. Interestingly only 16% of the Kenyans online have used the internet for e-commerce, even with the growth of e-commerce platforms including Jumia, OLX and PigiaMe. Still, E-commerce has a long way to go with several factors slowing down the growth. Key among these include lack of awareness on the power of e-commerce, integration of payments as well as delivery of customer purchases.
Locally, Jumia seems to be doing well from the surface. The online retailer has signed several exclusive deals with various smartphone manufacturers to sell their devices exclusively via the platform. The retailer is now planning to venture into the insurance business following an exclusive deal signed with AXA insurance. As part of the deal, AXA will offer custom-made insurance products to Jumia customers. Jumia, is active in 11 countries across Africa while AXA has presence in 8 African countries.
AXA also announced an $83 Million investment in Africa Internet Group, the holding company of Jumia. African Internet Group also owns Hello Food, Jovago, Lamudi, Easy Taxi and Kaymu. AXA currently does not have a presence in the Kenyan market but it will be interesting to see how they pull this one off bearing in mind the logistics of the insurance business coupled up with African e-commerce problems with delivery and payments.