In a bid to improve the delivery of products to underserved communities, especially rural and semi-urban areas, more e-commerce companies are increasingly turning to practical and innovative solutions such as pickup stations, to bridge this gap.

Speaking with The Guardian, CEO, Jumia Nigeria, Sunil Natraj, pointed out that infrastructure gaps are one of the most significant hurdles for e-commerce players seeking expansion beyond urban centres.

Adding that rural areas often suffer from poor roads and limited/non-existent delivery networks, making traditional door-to-door delivery both costly and inefficient, he said pickup stations are a realistic and effective solution to these challenges, providing online shoppers with a convenient alternative to home deliveries.

Explaining it, he said the pickup stations are strategically placed collection points where customers can easily retrieve their orders. Instead of navigating poorly maintained roads or traveling long distances to distant locations, he said e-commerce companies can concentrate on establishing central pickup hubs that are accessible to a broader audience, eliminating the need for last-mile delivery, which is often the most expensive and time-consuming part of the logistics chain in rural areas.

He went on to add that Jumia has embraced this strategy through its City Expansion Initiative, deploying pickup stations in remote areas to expand its reach and impact.

“Whilst the infrastructure gaps are major issues being tackled with the advent of pickup stations, another critical barrier for customers is the high and extremely unaffordable cost of delivery, which sometimes makes it super expensive for customers, who live far from major cities to engage in online shopping. Pickup stations offer a more affordable solution, rather than being subjected to paying exorbitant fees for home delivery. Customers can access goods at lower prices, and e-commerce companies can offer competitive delivery options without the need for complex last-mile logistics.”

Adding that these stations go beyond cost savings and infrastructure improvements, he said they also create opportunities for local businesses and foster trust in online shopping within communities.

Speaking, CEO of Elhay Services, Idrees Luqman Akorede, said he transformed his shop in Sagamu into a Jumia pickup station and observed a substantial increase in foot traffic, resulting in increased revenue.

Natraj said these stations would help solve logistics challenges for companies looking to tap into underserved markets, help them scale and drive industrial growth.

“By addressing infrastructure gaps and offering more affordable delivery options, these stations can reshape the future of e-commerce across Africa. As more e-commerce players adopt this model, the industry will continue to expand into new markets, provide greater access to goods and services for all as well as promote growth and inclusivity,” he said.