Zemen Gebeya, the digital marketplace that Ethio telecom switched on only two weeks ago, is already reshaping the fragile e-commerce scene. In a country where online retail remains a novelty, the platform’s arrival has raised a mix of apprehension and cautious optimism among smaller delivery companies that suddenly find themselves riding a wave of new orders, while bracing for a corporate giant that could one day eclipse them.

Few felt the jolt more quickly than Bereket Tadesse, founder of Asbeza, a grocery-delivery start-up that has operated for three years on a lean budget and a skeletal fleet. When news of Zemen Gebeya first broke, he saw an existential threat. A deep-pocketed state-owned carrier with nationwide reach and a recognised brand comes to his territory. However, traffic metrics told a different story. Asbeza’s daily deliveries jumped from roughly 80 to 100 to over 250 almost overnight.

“It's a big opportunity for e-commerce,” Bereket told Fortune. “The question is how capable start-ups like Asbeza are.”

The paradox has become a running theme. Zemen Gebeya draws shoppers inside the Telebirr SuperApp, already installed on about eight million phones, and lets them browse products ranging from sheep to smartphones. Within days, the market clocked roughly 2.4 million unique visitors and signed up around 80 merchants. Ethio telecom pitches the venture as an inclusive bazaar that will boost trust in online trade, which is still hobbled by patchy logistics, low digital literacy, and chronic payment friction.

“It's a digital marketplace,” said Mesay Wubshet, the carrier’s chief communications officer, noting that designers borrowed “international experiences like China.”

Chinese platforms process nearly half of global e-commerce transactions, a benchmark Ethio telecom executives often cite when discussing their ambitions. Logistics and credibility, they argue, are the twin pillars on which any successful marketplace should stand.

“We're building a system where the community, the businessman, and the manufacturer can save time and money and connect in one place,” said Solomon Abera, chief customer-experience and quality officer. “We can build trust through delivery; we already have a brand.”

Trust, or its lack, is the biggest obstacle most operators mention. Tamrat Zewde, a former tour guide who three years ago started AradaMart near 4 Kilo’s Birhan & Selam Printing Press, keeps warehouse shelves stocked with gadgets and household items but spends as much energy convincing first-time buyers that their orders will arrive.

“Trust is key," he told Fortune. "Ethio telecom can encourage this, not only for its customers but also for us.”

He sees Zemen Gebeya as both lifeline and threat, able to normalise online shopping yet powerful enough to dislodge smaller rivals.

“Start-ups need ongoing support, not just at launch,” he said, worried that aggressive promotions could eventually force him off the map. “If it comes to that, it really affects us.”

Those promotions keep Yoseph Hailu awake at night. He is the marketing manager at Zmall, a four-year-old service that delivers restaurant orders and supermarket staples through scooter fleets. The service promises “10 categories of business” and juggles three separate apps: one for shoppers, one for merchants, and one for couriers.

“Discounts are key to attracting and retaining customers,” he said. “If ethio telecom adopts this strategy, users will shift to Zemen Gebeya, impacting businesses like ours.”

Still, Yoseph conceded that the big platform “raises awareness and trust” in ways smaller firms cannot. His apps already integrate Telebirr for payments, a link that “boosts our customer trust.” Should Zemen Gebeya carve new niches, he added, “If they offer special services, we’ll refine ours.”

Ethio telecom insists it wants collaboration, not conquest. Executives say Zemen Gebeya will roll out in three phases; the first, now live, handles only a slice of the intended inventory, and later phases could double the catalogue. Solomon declined to cite specific targets but stated the company’s self-imposed limits:

“Telecom is a digital solution facilitator, not all about business,” he said. “We only sell our product; other products are left for their merchants.”

The carrier is also recruiting outside couriers, despite fielding a private fleet of more than 3,000 vehicles.

“Anyone can participate if they are trustworthy and meet all the requirements,” Solomon said. “The main goal is to create job opportunities.”

For some founders, that door might not open wide enough. Bereket fears Ethio telecom’s marketing power and ability to bundle data packages with coupons, for example, could drown out nascent brands, raising investor perception that smaller players cannot scale.

“They've promotion, capital, and transport,” he said. “If they enter delivery, where do we stand?”

Incentives that look harmless today could, he warned, “push us out entirely.”

Entrepreneurs in other corners of the digital economy sound similar notes. Dagmawit Abebe, who runs Kedemt Coffee and promotes women-owned and SME-led ventures, has joined Zemen Gebeya. She argues that e-commerce should evolve into a federation of specialised sites rather than a single megamall.