Job Tech vs. E-Commerce in Ethiopia: A Tale of Two Innovations

In Ethiopia, digital innovation is transforming how people work, connect, and build businesses. But not all sectors are moving at the same pace. While job tech is rapidly growing, e-commerce has struggled to scale.

Why is that?

Both industries are built around technology. Both serve young people, startups, and small businesses. Yet, one is thriving—and the other remains stuck. This contrast offers a clear lesson: innovation isn’t just about tech. It’s about understanding users.

The Rise of Job Tech Innovation in Ethiopia

In recent years, Ethiopia’s job market has shifted online. Entrepreneurs have developed platforms that allow:

  • SMEs to post job openings easily,

  • Applicants to apply from anywhere, at any time,

  • Gig workers and freelancers to get connected to short-term jobs.

These platforms are designed to be mobile-friendly, multilingual, and easy to navigate—even for users with limited digital experience.

Why are they working?
Because their founders started by understanding the users’ real problems—from expensive hiring processes to lack of visibility for job seekers. Through surveys, interviews, and direct feedback, they built tools that actually solved those problems.

They prioritized:

  • Local behavior and hiring culture

  • Simple UX design

  • Communication features like chat or call-back

  • Integration with services people already use (like SMS, local delivery, or in-person verification)

And they partnered with mentors, incubators, and business associations to scale responsibly.

Why E-Commerce in Ethiopia Still Struggles

By contrast, many e-commerce startups have faced adoption issues—not because the ideas were flawed, but because the execution overlooked the local user context.

Entrepreneurs tried to replicate other e-commerce models: apps, shopping carts, automated checkouts, and delivery systems. But many users were unfamiliar with those models. They wanted:

  • Direct communication with sellers

  • Personalized support

  • Payment after delivery or cash handling

  • Trust built through relationships—not interfaces

While formal e-commerce platforms slowed down, social media sales quietly flourished on Telegram and TikTok. Without advanced tools or big budgets, young sellers and content creators found creative ways to reach customers. They began posting products in Telegram groups, using TikTok videos as engaging product showcases, and managing orders directly through phone calls and DMs. Delivery was handled through local messengers or informal courier networks, often coordinated by personal contact. There were no websites, no shopping carts, and no payment gateways—just familiar platforms, direct communication, and trust-based transactions. This grassroots form of social media commerce worked because it fit naturally into people’s daily routines and felt more personal and reliable than formal platforms.

Just familiarity, hustle, and trust. It worked—because it fit the behavior people already had.

What This Teaches Us About Innovation

The job tech vs. e-commerce story in Ethiopia reveals something essential: Innovation thrives when it aligns with how people live, not how we expect them to behave.

The success of job tech isn’t due to advanced features—it’s because of:

  • Deep user research

  • Context-aware design

  • Local partnerships

  • Simplicity and trust

E-commerce, on the other hand, often skipped these steps—focusing on technology before understanding the customer journey.

Understanding Users is the Real Innovation

Whether you’re building for hiring, shopping, health, or agriculture—one truth holds across all sectors:

Entrepreneurs who win are the ones who listen first.

It’s not about building the most digital solution.
It’s about building the most usable one—
the one that fits into people’s lives naturally.

The rise of job tech proves that when solutions reflect real-world behavior and needs, they take off.
The struggle of e-commerce shows what happens when that step is skipped.

So whether you're working in job tech, fintech, edtech, or e-commerce—understanding the user isn’t optional. It’s everything.

Article written by WSA Youth Ambassador Bisrat Hagos Woldu

Co-Funded by the European Union