Konga To Invest N2.9Bn In Delivery Business
Konga, a Nigerian e-commerce company, has concluded plans to invest N2.9bn into its logistics arm, Kxpress in order to boost its presence in Nigeria.
The investment, according to the company, aims to solve delivery challenges affecting e-commerce in Nigeria and ensure customer satisfaction.
As reported in Punch, Konga in a statement on Sunday said the company would embark on a massive expansion of its fleet of delivery vans and motorcycles nationwide to ensure same-day delivery.
The Konga Chairman, Olusiji Ijogun, said that the management of Konga hoped to reduce the complexities associated with e-commerce in Nigeria.
According to him, delivery remains one of the major headaches confronting the e-commerce industry in Nigeria owing to the massive investment required to cover the length and breadth of the country as well as the lack of capacity among delivery companies – obvious challenges that Konga is eager to overcome.
“Delivery is one of the biggest problems confronting e-commerce in Nigeria and not everyone can solve this problem. We have received approval from the board of Konga to invest about N3.5bn in Kxpress to expand the fleet of vehicles available in the pool, in order to reach the last-mile faster and more conveniently,” Ijogun said.
“The intention is to add 200 new vans and 1,000 motorcycles as part of our determination to guarantee same-day delivery anywhere in Nigeria. This also informs the massive investment in warehouses in strategic parts of the country which will go a long way in helping us achieve this objective.”
He added, “We have the resources, the cutting-edge technology and human capital to make it happen. Also, we are one of the few companies around investing heavily in capacity-building training for its delivery staff owing to the dearth of certified logistics training institutes in the country.”