Covid-19 leads to an increase in online food deliveries in Kenya
Music, as the saying goes, is food for the soul.
Food is, well, food for the body.
During the week that followed the first reported Covid-19 case in Kenya, it was business as usual for venues that supply both food for the soul, as well as the body. Revelers danced happily in clubs, musical concerts played on, fresh produce markets were bustling with activity, and busy restaurants kept serving delicacies.
Then, it all came tumbling down.
The disruption came fast.
In Week 2, both the national and county governments started putting in place social distancing measures. Their first step was to close places which might encourage crowding. Fresh produce markets, bars, restaurants and concert venues were among the most natural of victims. In true Darwinian fashion, suppliers of food for the soul, as well as the body, had to evolve just as fast, or face extinction.
All manner of Kenyan musicians have done digital concerts by live-streaming across various social media platforms. From legendary rappers like Juliani and Nyashinski to soulful singers such as Mercy Masika and Phy, many have evolved with the times. Likewise, popular music festival Blankets and Wine hosts an artist every Sunday evening on Instagram Live. In this way, these musicians continue feeding weary souls during these difficult times.
The same is true for food suppliers. Even in the worst of times, food production and distribution lines must be kept alive. Our bodies need food to have the physical and spiritual strength needed to fight the virus as well as other calamities devastating Eastern Africa. To keep on supplying food amid disruption of supply chains, farmers have become increasingly reliant on digital platforms.
Many Kenyans prefer shopping for fresh produce in physical markets. However, Covid-19 has led to increased online trade in agricultural commodities as social distancing rules limit physical trading. This post highlights how this has impacted some organizations and how they are adapting to the situation.
1. Mkulima Young
Mkulima Young (Young Farmer) is an e-commerce platform which connects farmers with buyers. It has been one of the biggest beneficiaries, with internal reports obtained by the writer indicating a 75% increase in trading activity. According to Daniel Ngotho, a team leader, there has been a particular increase in trading of heavily imported commodities such as onions, despite a significant increase in prices.
The company also recently signed a deal with the Nakuru County government. This has made it easier for farmers from the county to market their products across the country. Likewise, it is finalizing talks with Equity Bank to provide financial support to farmers on its platform. Activity on the site is likely to surge further, with President Uhuru Kenyatta recently extending movement restrictions by another 21 days.
2. Twiga Foods and Jumia Foods
Twiga Foods distributes fresh produce through a business-to-business (B2B) model and, therefore, does not directly interact with consumers. Jumia Kenya, a daughter company to one of Africa’s largest online marketplaces, does interact directly with consumers who purchase products through its website. Its Foods division largely focuses on restaurant deliveries, which are dwindling. Covid-19 has triggered the two entities to strike a strategic alliance, dubbed Jumia Freshi powered by Twiga, to to complement each other’s strengths.
Twiga has a robust artificial intelligence (AI)-driven distribution system, while Jumia serves an estimated 1.5 million users across Kenya. The recently inked deal aims to make it easier for Jumia users to purchase fresh fruits and vegetables at an affordable price. On its part, Twiga’s logistics network would enable orders to be delivered to online purchasers on the same day. The partnership also includes a corporate social responsibility (CSR) component, whereby Jumia users can, additionally, buy food donations for distribution to vulnerable families.
3. Glovo and Uber Eats
Glovo is a five-year old Spanish online deliveries startup. In January, the Kenyan subsidiary scrapped its KES 100 (approximately 1 USD) flat-rate and introduced a dynamic payment model, whereby product deliveries are charged based on distance. While demand for delivery of non-food items and restaurant orders have significantly reduced during the pandemic, the organization has experienced a 300% increase in grocery deliveries.
Uber Eats started making food deliveries in Nairobi two years ago, with Kenya being its third African market after Egypt and South Africa. While initially focused on deliveries from upmarket restaurants, the reduction in restaurant orders has led to t an adjustment of the company’s business model to reach a wider market. For example, Uber Eats recently signed a delivery deal with supermarket chain Tuskys, to deliver the “Kibanda Menu,” with starting prices as low as KES 100.
4. Social Media Platforms
Trading activity in farmers’ communities across various social media platforms has risen significantly during the pandemic. Serving as information hubs as well as marketplaces, the most popular among these are housed on Facebook and WhatsApp platforms. These groups, such as the 400,000-member strong Digital Farmers Kenya, were in existence long before Covid-19. Membership consists of farmers and other players in the agricultural space who mainly exchange technical and market information.
However, there has been a recent surge in trading activity as farmers seek new ways to bring their unsold produce to the market. Many farmers exchange details on where to market produce as most major markets including schools, restaurants and fresh produce markets are not operating. Although they are not as optimized for ecommerce, such as Mkulima Young and Farmers Market Kenya, they are still a vital link in keeping food supply lines active.
Future Prospects
With the virus yet to be contained, market conditions in the medium to long term remain highly unpredictable. The rise in strategic partnerships and digital technologies is one coping strategy for farmers, logistical companies, ecommerce platforms, and other market actors.
These trends are likely to go on in the near future, and may very likely be the new normal even once Covid-19 has been contained. The digital shift in marketing of agricultural commodities is an emerging area and hence needs further exploration. This article is the first in a series which will explore this emerging area and the impact it is having.
In the meantime, we can only hope that suppliers will keep on delivering food for the body, as well as the soul.
Written by Atula Owade.
This article is part of Covid-19 Food/Future, an initiative under TMG ThinkTank for Sustainability’s SEWOH Lab project (https://www.tmg-thinktank.com/sewoh-lab). It aims at providing a unique and direct insight into the impacts of the Covid-19 pandemic on national and local food systems. Also follow @CovidFoodFuture, our Video Diaries From Nairobi, and @TMG_think on Twitter. Funding for this initiative is provided by BMZ, the German Federal Ministry for Economic Cooperation and Development.
