Shoprite, Africa’s largest retailer is a step closer to taking full ownership of Pingo Delivery — its logistics partner behind the successful Checkers Sixty60 service — after the Competition Commission recommended that the Competition Tribunal approve the deal without conditions.
Pingo was established in 2022 through an equal joint venture between Shoprite and RTT Group. The partnership followed the rapid growth of Shoprite’s on-demand delivery of groceries, Checkers Sixty60.
Checkers Sixty60 is SA’s top on-demand grocery delivery app, with more than 2.3-million downloads.
Shoprite in September announced it was in advanced talks to acquire the remaining 50% of Pingo, further enhancing its omnichannel retail strategy. At the time, the group said it expected to conclude the deal by the second half of 2025 and the transaction supported its vision to be “Africa’s most profitable omnichannel retailer”.
The group’s results for year ended June show that Sixty60 deliveries surged more than sixfold over the past three years, with 11,681 new jobs created since its launch.
Online food delivery services have grown rapidly in recent years, driven by the ease and safety they offer, especially in the wake of the Covid-19 pandemic.
The volume of orders in SA’s food delivery market is expected to reach $1.1bn in 2024, according to Statista, as its convenience and efficiency continues to attract high-end consumers. Statista expects the sector to record 11.34% growth in the next five years, resulting in a market volume of $2bn by 2029.
“The grocery delivery market in SA has seen a surge in demand, with major retailers and start-ups offering online shopping and home delivery services,” Statista said.
“The market has become more competitive, with companies offering same-day delivery, subscription services, and personalised recommendations to attract and retain customers. Furthermore, the use of mobile apps and social media platforms has made it easier for consumers to shop and compare prices.
“Despite the growth of the grocery delivery market in SA, there are still challenges that need to be addressed. The country's infrastructure, particularly in rural areas, is still underdeveloped, making it difficult for companies to offer delivery services in these regions. Additionally, the high cost of data and internet services can be a barrier for some consumers, limiting their access to online shopping,” Statista said.
Woolworths and Pick n Pay have made strides in this space, each leveraging their strengths and strategies to capture market share.
Woolworths’ on-demand delivery platform, Dash, recorded sales growth of 71% over the past year and has created an additional 2,200 jobs across the value chain in the past 12 months alone.
As a market leader, Sixty60 is not resting on its laurels. In May it extended its offering adding more than 10,000 larger general merchandise products from Checkers Hyper, ranging from outdoor gear and garden equipment to small appliances.
With Nompilo Goba
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