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TechCabal Daily – Made out of thin air


Jumia’s Q4 results are a mixed bag again
In Q3, Jumia’s results were a mixed bag. One really good point was that the company’s losses reduced although the fact that its Gross Merchandise Value (GMV) also reduced was a big deal.
Nevertheless, the thinking from a lot of investors was that e-commerce companies were going to flourish during the pandemic. Jumia didn’t seem to show that promise during Q2 and Q3 2020, but most of that was due to a business mix rebalancing.
Basically, Jumia decided to move from promoting high ticket items to selling household items. It’ll lead to a reduction in GMV, but it’s great for their business. This is because it’s making commissions on sales, advertising and logistics, unlike its former model where it tried to sell goods to customers.

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