Logistics

JazaSpace : a new innovation in logistics in East Africa

Written by Peter Simiyu

Tell us a few words about the founders and how the idea came

Peter Simiyu Wekesa is the founder of Jaza Space East Africa Ltd. The idea came to me while working as a Commercial Manager for an organization dealing with agro-inputs in East Africa back in 2016. A lot of clients would use their own form of transport to ferry the inputs from our then warehouses in Mombasa and Nairobi. While I would be pushing them to come to collect their orders since it would not be a sell without collection and payment. So I had to push them, as part of my role, and I had targets I needed to achieve. Most often, they would say, it is expensive to come to collect. So I was surprised by this response and became curious to want to know more. So basically due to competition, and margin calculations from these clients, it was better when they get cargo to ship en route to Nairobi or Mombasa to collect the inputs. The truck leaving empty was an extra expense on their side, an expense they preferred to avoid especially in low seasons.

So the idea came to my mind, and I began linking some of these clients with shippers who were delivering agricultural produce in Mombasa and Nairobi markets. Once they deliver, the trucks do not go back empty if my clients have an order. We utilize these empty space, and I get to achieve my targets. Then, I did it as a way of achieving my targets, and due to ethical issues, and the companies excellent code of conduct, I would not accept payment from the transporters. But I thought deep about the idea and here we are today as a Startup, filling trucks spaces on a digital platform.

 

Your products and services

Jaza Space offers an online service to logistic firms operating in East Africa. Our service in no way interferes with their normal business. On the contrary, we expand their market share and lower their expenses associated with transportation. How is this? The firms we partner with do their normal businesses of delivery of goods. We utilize the empty space after delivery by selling the space online. Interested shippers purchase the space at a competitive freight rate than they would normally get. It is a win-win situation for everyone

 

Your success factors

I would not call it success factors since we are just starting the online platform, but we have had a very good response from renowned logistic firms in Kenya willing to partner with us. One of the key concerns these logistic firms have always had was the deadhead trips or empty mileage trips. As Jaza Space East Africa Ltd, we are addressing these concern. There is a win for the environment and the society as a whole. How? Well, by utilizing the empty spaces of trucks after a delivery, we are in turn decongesting the roads and reducing the deterioration of highway infrastructure, secondly, fewer trucks on the roads mean a reduction of greenhouse gas emissions to the environment.

 

Your factors differentiating and disruptive compared to the existing

This is a unique business idea compared with what we already have in the market in that, we are targeting logistic firms that already have done their normal business of delivery. Secondly, we are partnering with these firms who share with us details of their truck movement, and we are in constant communication in order to make the business a success. Other companies do not sell spaces after delivery, they sell it as normal business.

 

Your business model  

Once we sell the space, we charge a small fee usually as a percentage of the total freight costs for a particular trip. 

 

A few words about your competitors

They are not really competition since there is a great room of opportunity for partnership with them. Contact us so we can talk more.

 

Your website 

 www.jazaspace.com

About the author

Peter Simiyu

Founder at Jaza Space East Africa Ltd, where we utilize an online platform to fill empty trucks during their return leg. Customers can buy space online, thereby increasing market share for business for the logistic firms, while decongesting the roads and reducing the deterioration of highway infrastructure caused by these trucks. Less trucks on the road also has a positive impact on environment due to reduced greenhouse emissions.

For our customers who are the shippers, we offer competitive and affordable freight rate.

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