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How digitally enabled last-mile delivery impacts e-commerce growth in Nigeria
The e-commerce and last mile delivery sector in Nigeria are expected to grow about 11 per cent by 2025 as it continues to attract strong investments according to business data platform Statista. Meanwhile, former ride-hailing app turned last-mile delivery and logistics player, Gokada say they have completed one million food deliveries and e-commerce orders on behalf of over thirty thousand merchants in Nigeria within the last 12 months alone. Gokada CEO, Nikhil Goel joins CNBC Africa to discuss the impact of digitally enabled last-mile delivery on Nigeria’s e-commerce space.
Thu, 03 Jun 2021 12:11:09 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Shift in consumer demands during the pandemic drives growth in last-mile delivery services
- Day-to-day challenges in the Nigerian market include traffic congestion and delivery logistics
- Gokada's 'business in a box' model prioritizes rider support and customer satisfaction, ensuring a competitive edge
The e-commerce and last mile delivery sector in Nigeria are set to witness a remarkable growth of about 11% by 2025, attracting significant investments as reported by business data platform Statista. Gokada, a former ride-hailing app transformed into a last-mile delivery and logistics player, recently announced that they have successfully completed one million food deliveries and e-commerce orders on behalf of over 30,000 merchants in Nigeria over the past year. Nikhil Goel, CEO of Gokada, shed light on the impact of digitally enabled last-mile delivery on Nigeria's e-commerce landscape in an exclusive interview with CNBC Africa.
When reflecting on the factors driving this growth trajectory, Goel attributed it to the shifting consumer demands during the pandemic. As businesses faced closures and people sought alternatives for goods and food delivery in Lagos, Gokada introduced a model focused on rapid and instant delivery, addressing the need for seamless and expedited services. By partnering closely with merchants and continually understanding customer needs, Gokada managed to capitalize on the evolving market requirements, fostering its expansion and enhancing customer experience.
Despite the impressive growth witnessed in the past six months, Goel elaborated on the day-to-day challenges encountered, particularly in a complex market like Nigeria. Gokada obtained the necessary licenses to operate as a regulated business, ensuring delivery services across the country. Challenges such as reducing delays, addressing pilot and customer issues, and navigating heavy traffic congestion remain key focus areas for the company. Moreover, the logistics of delivering bulky items in the midst of traffic pose additional hurdles that require innovative solutions.
In anticipation of future trends, Goel shared insights on Gokada's expansion plans to cities like Ibadan, Port Harcourt, and Abuja. The company's strategy involves thorough market research and data analysis to introduce services that cater to specific market needs effectively. By staying proactive and adaptable to market dynamics, Gokada aims to stay ahead of the competition and offer superior delivery solutions to customers across various Nigerian cities.
Gokada's unique 'business in a box' model has been instrumental in propelling the company forward. This approach emphasizes equipping Gokada's 'g-pilots' or riders with comprehensive support, training, resources, and safety measures to enhance their experience and, in turn, deliver optimal services to customers. By prioritizing both rider and customer satisfaction, Gokada has distinguished itself in the competitive e-commerce and last-mile delivery landscape.
Furthermore, Goel highlighted the evolving trends observed beyond Nigeria's borders, drawing parallels with experiences in Kenya. The accelerated pace of digital transformation and the increased demand for convenient and efficient delivery services across Africa demonstrate a continent-wide shift towards embracing innovative solutions. Gokada remains poised to adapt and innovate in response to changing consumer preferences and market dynamics, positioning itself as a key player in the region's evolving e-commerce ecosystem.
With a commitment to understanding customer needs, adhering to regulatory frameworks, and fostering a culture of excellence, Gokada continues to spearhead the digitally enabled last-mile delivery revolution in Nigeria, paving the way for sustainable e-commerce growth and enhanced consumer experiences.
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