DHL expands Africa eShop online retail app to 34 countries – gpgmail


DHL  has expanded its DHL Africa eShop business to 13 additional markets, upping the presence of the global shipping company’s e-commerce platform to 34 African countries.

DHL  href=”https://Gpgmail.com/2019/04/11/dhl-launches-africa-eshop-app-for-global-retailers-to-sell-into-africa/”>went live with the digital retail app in April, bringing more than 200 U.S. and U.K. sellers — from Neiman Marcus to Carters — online to African consumers.

Africa eShop operates using startup MallforAfrica.com’s white label fulfillment service, Link Commerce. Similar to MallforAfrica’s model, the arrangement allows Africa eShop users to purchase goods directly from the websites of any of the app’s global partners.

This week’s expansion is the second for DHL’s Africa eShop, after adding 9 markets in May.

DHL’s moves run parallel to significant developments this year in the Africa’s online retail scene—namely Jumia’s big capital raise through its IPO.

Here are Africa eShop’s latest additions: Angola, Benin, Burkina Faso, Burundi, Chad, Ethiopia, Guinea, Lesotho, Namibia, Niger, Sudan, Togo, and Zimbabwe.

MallforAfrica CEO Chris Folayan points to the novelty of online sales in many of Africa eShop’s new markets.

“For some of these countries no one has really tapped into e-commerce the way we’re tapping into it, with an ability to buy online and also buy online directly from places like Macy’s or Amazon,” he told gpgmail on a call.

Payment methods include local fintech options, such as Nigeria’s Paga and Kenya’s M-Pesa. DHL Africa eShop leverages the shipping giant’s existing delivery structure on the continent, through its DHL Express courier service.

To add some context, someone with a mobile phone and bank account in, say, Niger can now use DHL’s app to shop at Macys.com and have anything from designer sneakers to kitchenware shipped to their doorstep in Central-Africa.

DHL AFRICA ESHOP MAP

DHL Africa eShop is also offering incentives to entice first-time digital consumers.

“We will be launching with a promo, buy any 5 items from over 100 retail partners and get a $20 flat shipping fee. This is DHL’s way of showing they are dominant in shipping and eCommerce in Africa.”

As gpgmail highlighted this spring, the launch and expansion of DHL’s MallforAfrica supported platform is creating a competitive scenario with e-commerce unicorn Jumia.

Jumia is Africa’s most visible e-tailer and operates consumer retail and online service verticals in 14 African countries. Headquartered in Lagos, the company raised more than $200 million in an NYSE IPO this April.

DHL launched the Africa eShop product the day before Jumia went public and made its first country expansion only weeks after.

There’s a brewing business debate on which platform is best positioned to capture a larger share of a projected $2.1 trillion in consumer spending (10% online) expected in Africa by 2025.

Then there’s the question of who’s largest. DHL Africa eShop touts itself as “Africa’s Largest Online Shopping Platform.” Jumia said, “We believe that our platform is the largest e-commerce marketplace in Africa,” in its SEC F-1 filing.

On the prospect of going head to head with Africa’s best funded e-commerce company, Chris Folayan is somewhat circumspect.

“We’re note focused on competing with Jumia, but in a way it’s starting to happen as a result of our expansion and growth,” he said.

Two main spectators in a MallforAfrica, Jumia match up could be the big global e-commerce names.

Alibaba has talked about Africa expansion, but for the moment has not entered in full.

Amazon offers limited e-commerce sales on the continent, but more notably, has started with AWS services in Africa.

DHL and partner MallforAfrica plan to bring Africa eShop to all 54 African countries in coming years.

 

 


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Is Knotel poised to turn WeWork from a Unicorn into an Icarus? – gpgmail


The day of reckoning for the ‘flexible office space as a startup’ is coming, and it’s coming up fast. WeWork’s IPO filing has fired the starting gun on the race to become the game-changer both in the future of property and real estate but also the future of how we live and work. As Churchill once said, ‘we shape our buildings and afterwards our buildings shape us’.

Until recently WeWork was the ruler by which other flexible space startups were measured, but questions are now being asked if it deserves its valuation. The profitable IWG plc, formerly Regus, has been a business providing serviced offices, virtual offices, meeting rooms, and the rest, for years and yet WeWork is valued by ten times more.

That’s not to mention how it exposes landlords to $40 billion in rent commitments, something which a few of them are starting to feel rather nervous about.

Some analysts even say WeWork’s IPO is a ‘masterpiece of obfuscation’


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Pro rata rights, immigration, the sharing economy, AWS, Ray Dalio, and China’s smartphones – gpgmail


What founders need to know about pro rata rights

Pro rata used to be reasonably simple. Venture investors who bought preferred shares in startups had the right to lock in a certain percentage of equity provided they continued funding the company in the future rounds of financing. But as VCs have raised ever larger funds and cap tables have become ever more congested, who gets pro rata — and who keeps it — has become a massive distraction for many founders during their fundraises.

Andy Sparks, the founder of Holloway Guides (which, as my co-editor Eric Eldon wrote this week, raised $4.6 million from the New York Times and others), writes in with an analysis of pro rata rights from the latest Holloway Guide on Raising Venture Capital. We are really digging this new model of covering the issues affecting startups, and wish Sparks and his team well in their endeavor.

Pro rata is Latin for “in proportion.” Most people are familiar with the concept of prorating from dealing with landlords: if you’re entering into a lease halfway through the month, your rent may be prorated, where you pay an amount of the rent that is in proportion to your time actually occupying the property.

Almost all investors try to negotiate for pro rata rights, because if a company is doing well they want to own as much of it as possible. After all, why not double down on a winner than use that same money to invest in a newer, unproven company? In the 2018–2019 fundraising climate, though, it’s safe to say we’re at “peak pro rata.” Everybody wants pro rata, even those who don’t entirely understand how it works or affects companies.

Which immigration headlines should you care about?

Every day in the United States, immigration issues dominate the headlines. That can be very taxing for startups, which are often founded by immigrant entrepreneurs and often have sizable immigrant employee bases as well. So which stories should you pay attention to and which stories can you ignore and live in blissful ignorance?


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AWS revenue growth slips a bit, but remains Amazon’s golden goose – TechCrunch


Like Azure last week, AWS reported some slippage in its cloud earnings growth numbers today, dropping from 49% growth last year at this time to 37% this year. Total revenue increased from Q2 last year, from $6.105 billion to $8.381 billion this year. Today’s report puts the company on an astonishing run rate of more than $33 billion — just for AWS. That’s a successful company, never mind one that’s a division of a larger organization.

And Amazon has to be thrilled that it is, as AWS accounted for 13% of the company’s total income this quarter as it continues to help lead the way for the online retailer. All of that is mostly good news by most measures, but the slowing growth in a market that is continuing to accelerate is curious for both Microsoft and Amazon, as both companies continue to dominate the cloud infrastructure market.

Amazon controls approximately 33% of the market, while Microsoft accounts for around 16%. Regardless of whose numbers you look at, AWS has approximately double the market share of Microsoft, but Microsoft remains the only company with double-digit market share up until this point.

The drop by both companies could simply be attributed to the law of large numbers, which says as big as these two companies are, sustaining the kind of growth rates they were on becomes increasingly difficult over time, even in an accelerating market.

“What we are seeing is the law of large numbers where the revenue gets so high, the growth percent gain gets harder. AWS’s dollar gain is still larger than the number 2-5 [rivals] combined,” Patrick Moorhead, principal analyst at Moor Insights & Strategy, told TechCrunch.

As markets mature, growth just naturally slows down, and Amazon couldn’t maintain growth in the 40s forever no matter how hot the market is. Regardless, the revenue remains impressive and AWS continues to help drive Amazon’s success.



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