Jumia is reportedly "winning" the rural e-commerce market in Kenya, with 60% of its orders now originating from outside major cities, yet the company faces significant financial challenges and competitive pressures.

• Jumia's Q3 2025 revenue of $45.6 million missed investor forecasts of $50 million, leading to a 3.41% pre-market stock dive.
• The company's gross profit margin shrank from 14% to 12%, mainly due to rural customers prioritizing "Best prices (58.9%)" amid inflation.
• Jumia employs a 26,000-person "JForce" agent network and over 2,700 "Order Points" to facilitate rural sales, a strategy deemed expensive and low-margin.
• The company is lobbying against a new 5% Withholding Tax (WHT) on sales by local sellers, which it argues will harm its 60% SME seller base.
• In urban areas, Jumia is being outmaneuvered by retailers like Carrefour and informal sellers on platforms like Instagram and TikTok, offering faster delivery and "pay on delivery" options via boda-boda networks.