Amazon is coming to Nigeria and this has sent shivers down the spine of Jumia investors.
Africa’s leading online marketplace, Jumia’s shares dropped almost 10 per cent on Thursday, June 16, 2022.
Another leading e-commerce platform, Mercado Libre, an Argentine company operating in Latin American countries saw its shares slip by more than 7 per cent.
Business Insider report says that this is caused by the US Federal Reserve announcement of the biggest increase in interest rate after almost 30 years.
The S&P 500 was down about 2.9 per cent on Thursday afternoon, while the Nasdaq Composite dropped 3.6 per cent.
Global e-commerce giant, Amazon is making plans to launch marketplaces in Nigeria, South Africa and Columbia as early as next year.
The company’s growth will spur more competition for local players like Jumia, Thryve Platforms and Mercado Libre. Amazon also wants to expand to Belgium, internal documents state.
All countries are expected to get their own marketplace and access to Amazon’s fulfilment service called Fulfilment by Amazon, the documents said.
Amazon also plans to bring its Prime membership program to each of the countries shortly after the launch, it said.
Additional reports from Legit.NG