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How Zippy is defying the odds in Nigeria’s logistics business

Logistics in Nigeria is fraught with challenges. The lack of infrastructure is one of the biggest factors hampering supply chain efficiency in Africa’s most populous country.

Despite the economic challenges of COVID-19, an eight-year-old Nigerian logistics business is defying the odds using digitalization and emerging technologies, with a recipe for success that combines consolidated loads with seamless customer service and supply chain solutions that address the infrastructure and terrain challenges in Nigeria.

Kabir Shagaya, the founder of Zippy Logistics, said his own “lightbulb moment” was discovering a logistics gap in the Nigerian market and recognising the cost and efficiency advantages of load consolidation, particularly in a region where there are infrastructure challenges.

“We were one of the first partners for Jumia, Konga and DealDey, among others. Currently, Zippy facilitates trade by connecting buyers and sellers. We help businesses grow and expand quickly by providing access to retail customers in existing, new and underserved markets,” Shagaya said in a statement seen by BusinessDay.

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He noted that data sharing across the supply chain would produce cost efficiencies and transparency; however, “how each player will benefit individually is a battle that feeds into a general reluctance to share data even within the same supply chain.”

Shagaya strongly believes in co-opetition. “By partnering with larger companies, Small and Medium Sized Enterprises (SMEs) and consumer brands are able to expand their logistics networks, enabling faster deliveries of their products.”

“By cooperating with each other, competitors can attain greater rewards than they otherwise would without working together. Co-petition, the act of cooperation between competing companies, collaboration with competitors, etc. There are many names used to describe the same idea of companies who would naturally be competitors working together towards a common goal,” Shagaya noted.

Shagaya believes this development would expand market share for businesses and help win big projects and experience exponential growth. However, “without co-petition, this would not be possible in a short time”.

Most stakeholders say strategic partnerships with logistics, financial institutions, manufacturers, retail aggregators and retailers will create a potential to grow trade exponentially and expand across borders.

Over the years, Zippy Logistics has evolved from an e-commerce delivery business to the leading logistics firm for modern trade logistics and now with a sharper focus on trade. Trade transactions are valued at $15 trillion per year today and will reach $25 trillion by 2027.

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