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JMIA stock rose more than 13% on April 4, 2022, after the company announced a partnership with UPS.
UPS Partners with Jumia to Expand its Logistics Services in Africa
On April 4, 2022, Jumia (NYSE:JMIA) and UPS (UPS) announced a partnership giving UPS access to Jumia’s last mile logistics capabilities and infrastructure to grow its delivery services in Africa.
Leveraging the Jumia infrastructure in Africa, UPS will offer its customers an extended range of delivery solutions, including door to door package delivery and collection, with a variety of payment options. This partnership will also allow UPS to leverage the extensive network of Jumia drop-off and pick-up stations to expand the UPS reach and coverage across more towns and cities in Africa. The collaboration will initially cover Kenya, Morocco, Nigeria, with plans for expansion to Ghana and Ivory Coast, and thereafter to the remaining African countries where Jumia operates.
“At the beginning of our journey, 10 years ago, logistics infrastructure was one of the most challenging aspects of our operating environment. This challenge was a catalyst for us to build an unparalleled logistics platform in Africa offering our sellers and consumers reliable, convenient and cost-effective delivery services. Today, we are helping other businesses overcome these infrastructure challenges by giving them access to our logistics platform. We are delighted and humbled by the opportunity to partner up with UPS, a global logistics leader, to offer them last mile solutions in Africa. We view this as a validation of the strength of our logistics platform as well as an incentive to double down on our efforts to further enhance our services and build a world-class logistics business in Africa,” said Apoorva Kumar, Senior Vice President Logistics, Jumia.
“This partnership will help small and medium-sized businesses in Africa that make up 90 percent of all businesses on the continent and are the backbone of the economy. UPS’s asset-light approach, like the Jumia partnership, offers a pathway for businesses to quickly and reliably connect to new customers around the world through our global network, potentially accelerating their revenue growth,” said Gregory Goba Ble, Vice President of Engineering and Operations for Indian subcontinent, Middle East and Africa, UPS.
We believe that technology has the potential to transform everyday life in Africa, for the better. We built Jumia to help consumers access millions of goods and services conveniently and at the best prices while opening up a new way for sellers to reach consumers and grow their businesses.
Jumia is a leading e-commerce platform in Africa. Our marketplace is supported by our proprietary logistics business, Jumia Logistics, and our digital payment and fintech platform, JumiaPay. Jumia Logistics enables the seamless delivery of millions of packages while JumiaPay facilitates online payments and the distribution of a broad range of digital and financial services.
On February 23, 2022, Andrew Left’s Citron Research said via Twitter: “$JMIA mkt cap is only $200 mil for THE only pan African platform company (logistics, payments, ads, commerce). Last week Google CEO Sundar Pichai, said, “Africa is moving toward a digital transformation. Logistics. $JMIA Great risk reward at this level.”
📺 Jumia Earnings Breakdown and Stock Analysis | JMIA Stock
📉 JMIA Stock Technical Analysis
The long-term trend is still negative, but the short-term trend is positive, so the stock is getting more and more appreciated by traders and investors. JMIA is part of the Internet & Direct Marketing Retail industry. There are 85 other stocks in this industry, JMIA did better than 55% of them. Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.
There is a support zone ranging from 9.89 to 9.99. This zone is formed by a combination of multiple trend lines in the daily time frame. There is also a support zone ranging from 9.47 to 9.54. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
There is resistance at 13.56 from a trend line in the daily time frame.
JMIA has an average technical rating and it also does not offer a high-quality setup at the moment. JMIA stock has a Setup Rating of 2 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when JMIA stock consolidates and has a Setup Rating of 8 or higher.
