Perhaps for the first ever time since it set its foot in Africa, the Zips from drone logistics company Zipline will be transporting packages not remotely related to medical supplies.
This development follows the announcement that the San Francisco-headquartered company has signed a deal with e-commerce firm Jumia Technologies to deliver household items to remote areas of Ghana.
Jumia is an online marketplace for vendors and food sellers with related services that include logistics and payments. With a current market capitalisation of $741 million (according to Refinitiv data), the company was the first Africa-focused tech start-up to list on the New York Stock Exchange in 2019.
The deal with Zipline will see Jumia combine the instant logistics start-up’s automated, on-demand delivery system with Jumia’s distribution network to enable customers from remote and rural areas to order and receive electronics, cosmetics, fashion and other products.
An initial pilot was carried out across multiple use cases with varying product assortment logging up to 2,500km in testing. Deliveries to outlying Jumia hubs as far as 85km from the take-off location at the Zipline operational hub in Omenako in eastern Ghana were completed in less than an hour, with real-time visibility of the drone for all stakeholders in the delivery cycle.
The new venture is part of Jumia’s plan to reach its growing customer base in such areas, which make up about 27 percent of the company’s deliveries, a Jumia spokesman told Reuters, adding he could not immediately give financial details of the project.
“Using the latest instant logistics technology will allow Jumia to offer our consumers on-demand delivery of the products they need – instantly,” said Apoorva Kumar, EVP Jumia, Group COO.
“Whether they’re ordering electronics, fashion, health, and beauty, or other categories, Zipline’s instant logistics system will provide fast and convenient access. This will support Jumia’s commitment to sustainability and innovation and provide much-needed access to rural and remote areas where conventional delivery services have challenges.”
Zipline already has a solid footing in Ghana, having worked with the government to set up operations in the country’s healthcare logistics space in April 2019.
Aside from Omenako in the east, the company has now opened five more distribution hubs, serving about 2,300 health centres in Ashanti Mampong (Ashanti Region); Vobsi (North East Region); Anum (Eastern Region); Kete-Krachi (Western Region); and in Sefwi Wiawso in the Western North Region.
It played a significant part in the delivery of COVID-19-related medical supplies and vaccines when the pandemic was at its peak; as Ghana rushed to find innovative ways to reach people at a time when movement of goods was restricted.
Besides Ghana, Zipline currently carries out drone delivery of blood, vaccines and other medical equipment in Rwanda, Nigeria and the United States, with its most recent foray into Japan.
Said Daniel Marfo, SVP – Zipline Africa; “Zipline is pleased to partner with Jumia to use instant logistics to improve the lives of customers across Africa. This collaboration will increase access to goods for customers and help small and medium-sized businesses grow. Zipline's safe and efficient instant logistics system will make shopping on Jumia even more convenient, sustainable and accessible for its customers.”
In their statement, the two companies also revealed plans to expand operations into Cote d’Ivoire and Nigeria, although there was no timeframe for those expansion blueprints.
On e-commerce deliveries, the company has an American precedent – last November Zipline partnered with retail giant Walmart to start a pilot on e-commerce shopping deliveries in Pea Ridge, Arkansas. The service, selectable to online shoppers using a special mobile app, could deliver to all residences within 80 km of the Walmart store in Pea Ridge during daylight hours.
Jumia operates in 11 African countries and has more than 30 warehouses and 3,000 drop-off and pick-up stations in its logistics network.