Kamal Budhabatti, Craft Silicon’s Group CEO, highlights the prevalent trend in Kenya’s e-logistics sector, emphasizing the trade-off between rapid growth and sustainability. The recent exit of Sendy from the market has led some customers to turn to alternatives like Little Logistics, part of Craft Silicon’s diverse services that include the evolving Little Cab super app.
The key challenges faced by e-logistics firms in Kenya—financial sustainability, customer-centric approach, regulatory hurdles, high operational costs, and limited access to funding—mirror Sendy’s experience. Overcoming these challenges requires innovation, adaptability, cost efficiency, and a focus on customer satisfaction. The closure of Sendy offers valuable insights for new startups aiming for sustainable success in the Kenyan logistics market.
Budhabatti notes that while many funded players prioritize scaling up for increased valuation, they often overlook sustainability.
Adoption of technology, such as mobile apps and tracking systems, has significantly contributed to the success of logistics companies in Kenya. For instance, Little Logistics leverages mobile and web apps to streamline product delivery, order processing, and payment facilitation. Startups should prioritize integrating such technologies for future success.
Strategic partnerships with local businesses, governments, or organizations can enhance the success of logistics startups. Aligning with governing bodies or manufacturer associations can provide valuable resources, market access, and expertise.
Building and maintaining customer trust in Kenya’s unique e-logistics market requires strategic approaches. Startups should align partnerships with their goals and values, considering collaborations with local communities, emergency services, security providers, and e-commerce companies.
Amid Sendy’s closure, former clients have turned to alternatives like Little Logistics due to factors such as market presence, reputation, and customized services. Little’s advanced technology stack has attracted customers from other platforms as well.
In conclusion, the e-logistics landscape in Kenya demands a balanced approach to growth and sustainability, leveraging technology, forming strategic partnerships, and prioritizing customer trust for long-term success.