The deal between the two companies will have Jumia handling the last-mile delivery of packages shipped through UPS. This allows UPS to expand its business in Africa to more areas.
The partnership between UPS and Jumia will initially expand the former’s delivery options to Kenya, Morocco, and Nigeria. Afterward, there are plans to stretch into Ghana and Ivory Coast as well. Finally, UPS wants to reach all areas where Jumia operates when these two rollouts are complete.
In addition to Jumia’s last-mile logistics capabilities and infrastructure, the deal also nets UPS access to its drop-off and pick-up stations. It also covers door-to-door package delivery and pickup.
Apoorva Kumar, senior vice president of logistics at Jumia, said this about the news boosting JMIA stock today.
“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.”
JMIA is already seeing strong trading today with markets only recently opening. As of this writing, some 3.7 million shares have changed hands. That’s closing in on the company’s daily average trading volume of about 4.3 million shares.
JMIA stock is up 21.9% as of Monday morning but is still down 3.3% since the start of the year.
Investors seeking more stock market news this morning are in luck!
We’ve got all the hottest stock market news that traders need to know about today! A few examples include what has Twitter (NYSE:TWTR) stock rising today, this morning’s biggest pre-market stock movers, as well as investors betting on Chinese stocks. You can find out more on these matters at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.