Amazon sparks competition in SA’s same-day delivery market

The competition in South Africa’s e-commerce sector is intensifying with global players like Amazon gradually reshaping the landscape. A recent report suggests that growth in the digital economy could boost the local economy by R91.4 billion over the next decade. However, challenges such as unreliable internet connectivity continue to hinder its full potential. 

The demand for same-day delivery is driving changes in the logistics sector, with local courier companies ramping up their capabilities to meet the needs of e-commerce giants. Arthur Goldstuck, CEO of World Wide Worx, highlights the shift: 

“We’ve seen major courier companies like Courier IT and The Courier Guy ramping up their offerings. Courier Guy, for example, was acquired by a venture capital company, likely anticipating the increase in demand for same-day delivery services. This puts significant pressure on the logistics sector to streamline operations.” 

While Amazon’s entry into South Africa earlier this year did not create the expected disruption, experts believe this measured approach is strategic. Goldstuck explains, “Amazon has adopted a slow, soft launch in South Africa, focusing on refining their strategy rather than aggressively competing with market leaders like Takealot. However, their recent moves during the festive season indicate a sharper strategy is beginning to emerge.” 

Amazon Sub-Saharan Africa Managing Director Robert Koen acknowledges initial shortcomings in product selection but emphasizes customer satisfaction and timely delivery. “While we’re still expanding our product range, customers appreciate the value, service, and on-time delivery,” said Koen. 

Meanwhile, Takealot’s parent company, Naspers, remains committed to sustainable growth in South Africa. Shamiela Letsoalo, Director of Corporate Affairs, revealed plans to collaborate with the Department of Trade, Industry, and Competition on initiatives to support the township economy. 

Experts also suggest Amazon may soon compete directly with grocery delivery platforms like Checkers Sixty, signalling further competition in the same-day delivery market.