Market Insights eCommerce Online Food Delivery Meal Delivery

Platform Delivery - Eastern Africa

Eastern Africa

The Platform Delivery market in Eastern Africa is projected to witness a significant growth in revenue, with an estimated value of US$448.30m by the year 2024.
This growth is expected to continue at an annual rate of 11.54% (CAGR 2024-2029), resulting in a projected market volume of US$774.10m by 2029.
Moreover, the number of users in the Platform Delivery market is anticipated to reach 19.1m users by 2029.
The user penetration rate, which currently stands at 2.6% in 2024, is projected to increase to 3.7% by 2029.
Additionally, the average revenue per user (ARPU) is expected to be approximately US$37.03.
In a global comparison, China is expected to generate the highest revenue in the Platform Delivery market, reaching a staggering US$165,200.00m by 2024.
Furthermore, China boasts the highest user penetration rate in the market, with a projected rate of 52.3%.
Eastern Africa is experiencing a rapid growth in platform delivery services, with companies like Sendy and Jumia dominating the market.

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Analyst Opinion

The Platform Delivery market in Eastern Africa has been experiencing significant growth in recent years, driven by several factors such as the increasing adoption of e-commerce, rising demand for home delivery services, and the growing popularity of online food ordering.

Customer preferences: Customers in Eastern Africa are increasingly turning to online platforms for their shopping needs, particularly due to the convenience and accessibility that comes with it. As such, there has been a surge in demand for home delivery services, with customers preferring to have their purchases delivered to their doorstep. Additionally, the COVID-19 pandemic has further accelerated the shift towards online shopping, as consumers seek to avoid crowded places and reduce the risk of exposure to the virus.

Trends in the market: One of the biggest trends in the Platform Delivery market in Eastern Africa is the rise of e-commerce platforms. Several local and international players have entered the market, offering customers a wide range of products and services. In addition to this, there has been a growing trend of online food ordering, with customers using platforms such as Jumia Food, Uber Eats, and Glovo to order food from their favorite restaurants.Another trend in the market is the increasing popularity of last-mile delivery services. With more customers opting for home delivery, companies are investing in last-mile delivery solutions to improve the efficiency and speed of their delivery operations. This has led to the emergence of new players in the market, such as Sendy, who specialize in providing last-mile delivery services to businesses and individuals.

Local special circumstances: Eastern Africa is a region with a diverse set of countries, each with its unique set of challenges and opportunities. For example, in countries such as Kenya and Tanzania, there has been significant investment in infrastructure, particularly in the development of road networks, which has helped to improve the efficiency of delivery operations. In contrast, countries such as Somalia and South Sudan face significant challenges in terms of security and political instability, which can make it difficult for companies to operate in these markets.

Underlying macroeconomic factors: The Platform Delivery market in Eastern Africa is being driven by several macroeconomic factors, such as the increasing adoption of technology, rising urbanization, and a growing middle class. With more people moving to cities and adopting digital technologies, there is a growing demand for online services, including e-commerce and home delivery. Additionally, the region's growing middle class is becoming more tech-savvy and is increasingly turning to online platforms for their shopping needs. These factors are expected to continue driving the growth of the Platform Delivery market in Eastern Africa in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.