Jumia, the Nigeria E commerce giant to have all the African Internet Groups under them, this is as a result of unprecedented name change to boost the confidence of the investors that are having issues with the growth of the group in the last few years.
According to reports, this move is to help boost AIG’s marketing strategy. Over the past six months, Rocket Internet’s share price has dropped by more than 25% and they have had problems winning investors’ confidence.
This means all startups under AIG are undergoing some form of rebranding or the other. Basically, their names are going to be changed to Jumia-something. Jovago will become Jumia Travel, Lamudi will be Jumia House, HelloFood is morphing into Jumia Food, Carmudi will be Jumia Cars, Vendito will become Jumia Deals, and Everjobs will be known as Jumia Jobs.
It is worthy to note that African Internet group is a subsidiary of Rocket Internet, Rocket Internet SE is a German Internet company headquartered in Berlin. The company builds online startups and owns shareholdings in various models of internet retail businesses. The company model is known as a startup studio or a venture builder.
With the name change, Jumia will become all sorts of services provider in Africa, and this will boost their expansions easily and become one of the biggest internet company in African, if this new partnership becomes successful.
Further more, the management have not said anything about the status of the staffs, whether their going to be change in the terms of management also, is what we cannot say, let us put that the company is just undergoing a name change and that the each startup are going to run independently from Jumia.
Rocket internet’s founder and CEO, Oliver Samwer said, “Jumia in Africa is billing out its market share in a difficult macro environment and we are very optimistic for this business in a very long life.”
Marek Zmyslowski, founder and ex-CEO of Jovago who left the company on not quite amicable terms, feels that this is something the Group should have seen coming and acted on, or at least paid attention to advice given.
In his words, “This move means so many things. Failure of concept of raising together funds for different businesses. Failure of the whole business strategy that was pushed for the last couple years. Failure of launching ventures without real founders that have the power of making decisions.”
He continued by saying, “People who saw problems coming and tried to change something, but were not heard by the top management and had no choice but to leave, have a bitter feeling of being right today.”
Of a recent, Jumia partner with Huawei to produce a budget smartphone with its brand, where the author said that, if care is not taken, the revolution that will come with sale of smartphones, will be that these giants in e commerce in African, Konga, Jumia will sees that they are sole authorized for the sale of smartphones.
We wish them luck