Johannesburg - The growth of e-commerce in South African townships is on the rise, with more households going online to purchase appliances and food and to access services.
The 2022 South African Township CX Report surveyed over 1 400 township residents, and it has been found that within a year, online purchases climbed up by a 42% margin, from 28% in 2021 to 70% in 2022.
Naturally, one would imagine that companies looking to offer last-mile services in townships would be clamouring to get their share of the township market. The reality is that there are real challenges that come along with trying to deliver in townships.
One such challenge is the issue of safety and crime. Some courier companies are reluctant to operate in areas which have been identified as crime hotspots.
An example of this is the food delivery service Uber Eats deciding in September 2022 to cease deliveries to parts of Soweto.
“As a company that prioritises the safety of users on the platform, we have engaged rigorously with delivery people through roundtables and surveys to better understand the realities they face on the ground when it comes to safety," Charles Khumbo Mhango, head of operations for SA Uber Eats, said in a statement.
This has left many areas in townships under-serviced. It has also left a gap in the market for township entrepreneurs to start their delivery services and fill the void left by the bigger enterprises.
We look at some of the entrepreneurial ventures undertaken by township entrepreneurs to service the delivery needs of township residents.
KasiD
KasiD is a food delivery service that was founded by Freddy Mahhumane. Mahhumane, a Tembisa native, believes he understands the township market better, which puts him in a position to thrive.
“I saw it as an opportunity for me. I think they don't have the right background in terms of the township culture. For us, as a business, that’s one of our competitive advantages because we are from the township, so understand the culture in the township,” said Mahhumane.
At present, KasiD operates in Tembisa, Midrand, Kempton Park, Ivory Park, Chloorkop and Kaalfontein.
Mahhumane dreams of expanding his food delivery business to other parts of the country and beyond South Africa's borders, taking on the established food delivery apps head-on.
He said: “I’d like to think we’ve built the very same technology as Mr D and Uber Eats. We made sure that where we could not find better, we met the same standards as them.
“We want to be the No 1 black-owned delivery business in South Africa, and we don’t want to stop there. We've recently received a trading letter in Botswana because we also see our business expanding into Africa.”
Delivery Ka Speed
Delivery ka speed was founded in Hammanskraal, north of Pretoria. The company seeks to provide convenient delivery services to the township market while cultivating the culture of gig work for the township's unemployed youth.
The business has grown exponentially, and what started as a WhatsApp-based delivery service now has a fully-fledged app, which has been nominated for the MTN Business App of The Year.
They now service Mamelodi, Atteridgeville and Soshanguve in Pretoria, as well as TsaKane, Katlehong and Vosloorus on Johannesburg’s East Rand.
The work has not gone unnoticed, and they recently won R50 000 in the inaugural The Future Table competition, which was hosted by the Entrepreneurship To The Point (eTTP).
Upon receiving the prize, Godiragetse Fareed Mogajane, founder and CEO of Delivery Ka Speed SA, said: “Winning this prize simply helps me to assist more and more youth to become successful and self-sufficient. I am most proud of the fact that we can employ young people, many of whom have given up and would otherwise be faced with other social ills. We all know the many challenges we face in the township, and I am proud that we can play a part in finding solutions.”
Swypa Delivery
Founded in 2019, Swypa delivers food and groceries for both formal and informal businesses at a flat delivery fee that ranges from R35 in Tembisa and Soweto and increases up to R50 in areas such as Chloorkop, Estate, Norkem Park and Birchleigh.
The company offers consumers a service where they find groceries for customers at the cheapest price by comparing how much goods are at various retailers and delivering the cheapest groceries to their customers.
The delivery service has not only brought convenience to township consumers but also much-needed employment to the youth residing in the townships as they ensure that they only employ people who live in the communities they serve.
IOL Business