Shell, Java House venture into night economy
Shell is seeking to turn its fueling stations into 24-hour operations. Photo / Courtesy
What you need to know:
- For the last 10 years, Shell has been working with Java House to implement a strategy that seeks to take Shell fueling stations to one-stop shopping centres
Vivo Energy has said it will convert 70 percent of its Shell-branded fueling stations in Kampala into 24-hour service points to tap into the night economy.
Speaking at the opening of a Java House restaurant at Shell Muyenga in Kampala last week, Ms Joanita Mukasa Menya, the Vivo Energy managing director, said for the last 10 years, they had been working with Java House to implement a strategy that takes Shell points beyond being fuel refill stations to becoming one-stop shopping centres.
“It is an experience coming with other things. You can get food, financial services, and pharmaceuticals. Java House has synced with our strategy,” she said, noting that in a bid to tap into the night economy, they had also automated 70 percent of their stations in Kampala, through which they would further seek to understand consumers, service offerings, customer needs, and shopping patterns.
Uganda’s night economy remains largely unexploited, relying mainly on bars, night clubs and restaurants, among others scattered in different parts of Kampala and urban areas across Uganda.
Speaking at the 12th CPA Economic Forum in Entebbe, Wakiso District in July, Dr Fred Muhumuza, the Makerere University Business School Economic Forum director, said the night economy has the potential to contribute to economic growth through employment and consumer spending.
Mr Priscilla Gathungu, the Java House Group chief executive officer, said the Vivo Energy network will be key in expanding its reach, noting that the Shell Muyenga outlet was the sixth addition to its network in Uganda and the 95th in East Africa.
“There are opportunities and the supportive environment allows us to trade and create more partnerships,” she said.
Java House entered Uganda about 10 years ago. But the company slowed its expansion after a protracted court battle in which it faulted Café Javas of operating using features similar to Java House.
However, Ms Gathungu said they had since refocused their operations, noting that they were now ready to compete to provide Ugandans with a variety of alternatives.
He also indicated that the night economy, if well promoted, would mitigate daytime urban congestion.
