Tag: takealot

By Darren Parker for Engineering News

Retail chain Pick n Pay and online store Takealot have signed a commercial services agreement which will enable customers across South Africa to buy Pick n Pay food, groceries and liquor on a new platform on the food delivery services application (app) Mr D.

In a statement issued on 17 May, the companies said the new service would bring together their respective strengths.

Pick n Pay would bring its expertise in running fresh food and grocery retail outlets, as well as its nationwide store network, as well as its Smart Shopper loyalty programme.

Meanwhile, Takealot will bring online retail and technical expertise, as well as its established delivery network.

Under the agreement, when customers open the Mr D app, they will be offered the choice to either buy groceries or order meals from restaurants. By clicking on the option to buy groceries, customers will enter a dedicated Pick n Pay food and grocery digital store in the Mr D app.

Customers will be able to browse and select the items they want to buy and then create their baskets. Once the order is submitted and paid, Pick n Pay will pick and pack the order from the nearest Pick n Pay store, which will then be collected by a member of the Takealot delivery fleet and delivered to the customer.

Pick n Pay’s Smart Shopper loyalty programme will be embedded into the Mr D app so that customers will still be able to earn points when buying Pick n Pay groceries through the app.

“By working with Takealot, customers will … benefit from a bigger, better, faster and more exciting offer … This is a new era for Pick n Pay and for its customers. There is huge potential for omnichannel retail in this country.

“Through this agreement with Takealot, we intend to regain market leadership in online grocery, and to do so in a sustainable and profitable way,” Pick n Pay CEO Pieter Boone said.

He added that the company planned to increase its online revenue eight-fold by the 2026 financial year.

Takealot executive chairperson Kim Reid believed Mr D’s 2.5-million customers would be “delighted” to see a Pick n Pay grocery offer appear on the platform.

“The combination of Pick n Pay’s reach, quality and pricing, together with Takealot’s … technology and scalable delivery network is a recipe for success. Scalability will be a huge advantage. Takealot … currently delivers over five-million packages per month, with the ability and ambition to serve many more customers as demand for this offer grows,” Reid said.

Pick n Pay and Takealot intend to launch the service on a trial basis in Cape Town in August, with plans to roll it out nationwide by the end of the 2023 financial year.

 

Competition Commission sets sights on big tech

The Online Intermediation Platforms Market Inquiry (OIPMI) at the Competition Commission has released the schedule of participants for the public hearings to be on 2–19 November 2021.

The Competition Commission announced its inquiry in February , stating that it would encompass companies such as Takealot, Uber Eats, and Airbnb.

It specifically singled out Takealot as an important focus of its investigation because of its share of the local ecommerce sector and the dual role played by the company as an online marketplace and a seller of products.

The Competition Commission raised concerns over potential conflicts of interest when a platform operator offers a marketplace for sellers while also being a merchant itself.

It said that this may provide companies with the incentive to favour themselves and squeeze out competitors.

Takealot is also much bigger than any other online retailer in South Africa, which the Commission stated warrants concern over its potential dominance of the market.

“In ecommerce, Takealot (including Superbalist) is substantially larger than other online platforms and operates a marketplace on which many business users are now dependent as a route to market,” it said.

The Commission stated that the following sectors would be investigated as part of the inquiry:

  • Ecommerce marketplaces
  • Online classifieds
  • Travel and accommodation aggregators
  • Short term accommodation intermediation
  • Food delivery
  • App stores
  • Other platforms identified in the course of the inquiry

Other platforms named explicitly in the document included Airbnb, Mr D Food, Uber Eats, TravelStart, Autotrader, Cars.co.za, Property24, Private Property, the Google Play Store, and the Apple App Store.

It later clarified that the inquiry would not be limited to South African ecommerce businesses and would include international players like Amazon .

While most of the slots for its upcoming hearings have been allocated, the Commission said it is still confirming time slots with a few participants and the final schedule will be published on 27 October.

Any online platforms, business users or industry organisations that still wish to participate may approach the Commission prior to this date through email — oipmi@compcom.co.za .

The public hearings will be virtual and the public can watch the hearings on the Competition Commission’s YouTube channel .

The following companies have confirmed presentation slots during the public hearings:

App stores

Huawei
Interactive Entertainment South Africa (IESA)
App Developer Studio
Devon Software
SAVCA
Naspers
Google and Google Play

Travel accommodation platforms

Tripco
SA Venues
SAVRALA
Flightsite
Avis
Xtreme Car Rental
Google search, travel and shopping
AKTV
Travelstart
Expedia

Ecommerce platforms

BidorBuy
Adeo
Red puppy
Elite Shopper
Makro
Takealot
Price Check
Delivery platforms

Dryver
Buzz Delivery
Sisters on the Move
UberEats
Quench
Paarl Eats
We Dash
Restaurant Association of South Africa
MrD
Famous Brands
Bolt Food

Online classifieds

MyProperty
Private Property
0800Properties
Property24
Autotrader
Carfind
Cars.co.za
Sandown Motor Holdings
eDreams

Takealot appoints new CEO

Source: News24

Mamongae Mahlare has been appointed as the new CEO of the Takealot Group, replacing founder Kim Reid, who stepped down in February to become chairperson of the group.

Mahlare will be CEO from October. She joins the Takealot Group from Illovo Sugar SA, where she was managing director.

She previously worked at SABMiller, Unilever and Coca-Cola. According to a statement by Takealot, she has experience in a number of fields, including operations, strategy, innovation, engineering, and branding.

“We have searched far and wide to find a leader who has the experience, skills and ambition to write the next chapter for the Takealot Group. I’m excited for this next phase and, as chairman, I am very much looking forward to partnering with Mamongae to continue to grow the business,” said Reid.

“We’re delighted that Mamongae is joining the group at such a pivotal time for Takealot. The business is in great shape and ready for its next phase of growth under a strong leadership team,” said Bob van Dijk, Group CEO for Prosus and Naspers, which owns Takealot.

The Takealot Group owns online retailers Takealot.com and Superbalist.com, as well as delivery service Mr D Food.

“The opportunity to lead a technology-centric, innovative, South African champion that has created thousands of jobs and enabled so many SMMEs over the past ten years is both exciting and humbling,” said Mahlare.

Tessa Ackermann has been appointed as the group’s chief financial officer. Other appointments include Alex Wörz, who has been appointed CEO of Mr D Food, Rayhaan Samsodien, who is the new CFO of Mr D Food, Octavius Vermooten as the new CFO of Takealot.com and Jurgen Hanekom, the new CFO for Superbalist.com.

“Seeing all the new appointments coming from within the group excites me as it points to the fact that the business creates opportunities for people to grow and progress,” said Mahlare.

Takealot is now half the size of Game

Source: Business Insider SA

Naspers on Monday announced a 65% surge in revenues at Takealot, in full-year results up to the end of March, to $606-million.

That makes for the equivalent of around R8.30-billion, or a monthly average not far below R700-million, for the unit, which includes the Mr D Food delivery business, fashion retailer Superbalist, as well as everything-store Takealot.com.

Mr D Food’s order volumes were up 117%, which saw its revenues more than double, said Naspers. In rand terms, Superbalist’s gross sales were up 45%.

On Takealot, third-party sales conducted via its platform grew faster than its own direct sales, said Naspers, after it added new sellers and new product categories.

In its most recent results, for the 52 weeks to the end of December, Massmart-owned Game recorded sales of R16.7 billion – down 15.5% from the year before. On a comparable-stores bases, its sales were down 13.2%.

Game suffered from trading restrictions on some categories of goods during hard lockdowns, but also said it has seen the impact of reduced foot traffic in malls, and shorter trading hours, plus trouble with stock due to both its own system issues and struggling vendors.

Its online sales were up 77.5% – but from a relatively small base.

Game, however, made money, reporting in its last full year a 21.7% increase in trading profit to slightly over R1 billion. Meanwhile Takealot unit’s “losses decreased to near breakeven”, said Naspers on Monday.

Takealot’s full year loss was $7 million, according to a Naspers investor presentation, the equivalent of a little under R100 million.

 

Takealot competitor launched

Source: MyBroadband

New ecommerce player Everyshop has launched, offering South Africans a wide range of technology products, computers, appliances, and other products from leading brands.

Everyshop is part of JD Group, which owns many high-profile retail chains, including Incredible Connection and HiFi Corp.

Through these stores, JD Group offers consumers technology products, computers, appliances, and gadgets.

It also provides household goods, including furniture, mattresses, and appliances through Rochester, Sleepmasters, Bradlows, and Russells.

JD Group has a national network of 16 distribution centres that perform home deliveries to customers using their own logistics fleet and courier partners.

The increased need for convenience through online shopping has encouraged the company to look at new ways to serve its customers, which culminated in the launch of Everyshop.

Everyshop features products from the group’s existing product ranges and many new product categories and leading brands.

It currently offers products in 10 main categories – entertainment, fashion, health & beauty, perfect home, work & study, projects & DIY, lifestyle & leisure, fitness, cellular, and kid’s world.

Everyshop featured numerous big tech brands like Sony, HP, Acer, Apple, Canon, Dell, Epson, Garmin, Hisense, Huawei, JBL, LG, Samsung, Pioneer, and Xbox.

Delivery is available throughout South Africa and will be made from Monday to Friday (excluding public holidays), subject to payment and order confirmation before 12:00.

Depending on origin and destination, a delay of up to 24 hours may be experienced on delivery to outlying areas.

Everyshop offers many payment options, including debit, credit, and cheque cards, Maestro and VISA Electron debit cards, Discovery Miles, Visa Checkout, MasterPass, Call Pay, PayU Wallet, and Everyshop gift cards.

The online shopping platform does not currently support collections. It is, however, planning to launch collection points in the near future.

Takealot’s dominance in SA to be investigated

By Jamie McKane for MyBroadband

The Competition Commission will proactively investigate the dominance of Takealot and other major players in South Africa’s digital market.

Speaking at the 14th Annual Competition Law, Economics, and Policy Conference, Commissioner Tembinkosi Bonakele reiterated the Commission’s commitment to actively investigating and creating new regulations that would prevent the abuse of dominance by major firms.

Takealot was singled out as a dominant force in the South African digital market, with Bonakele likening the ecommerce company to Amazon in the United States and Alibaba in China.

“It is clear that in digital markets it is easy for vertical integration to lead to what is referred to as the ‘tipping’ of the markets, which means there is a likelihood for the rapid expansion of one large dominant platform within a particular market,” Bonakele said.

“We have seen examples of this with the likes of Amazon in the US, Alibaba in China, and we are seeing the same with Takealot in South Africa. Indeed, we already have some cases we are investigating in these markets.”

Bonakele said the Commission’s approach would be a proactive one which attempts to determine any potential abuse of dominance before it can manifest.

“We intend to pursue strategic action for enforcement, including mapping the digital access landscape of South Africa to inform the proactive investigation of conduct by dominant platforms which may be excluding rivals and entrenching dominance,” Bonakele said.

“We have taken a decisive and proactive stance to ensure the balance of economic forces favour a shift to enable a more competitive digital economy.”

“This requires removing the entry barriers, including those created by dominant platforms, and preventing concentration in the online economy of South Africa,” he said.

Stakeholders and companies such as Takealot had until the end of October to make submissions to the Commission on its whitepaper regarding the digital economy in South Africa.

Bonakele said the next step is for the Commission to assess these submissions and have further engagements with key stakeholders before publishing a final report.

The final report will outline the way forward for South Africa in dealing with these markets, he said.

Takealot dominant in South Africa
Takealot is the biggest online store in South Africa by a wide margin, and for this reason, it was singled out in the Competition Commissions “Competition in the Digital Economy” whitepaper.

“The most popular digital platforms around the world are widely used in South Africa but Internet usage takes on a local flavour in financial service platforms and ecommerce, where some traditional stores with an online presence and Takealot – which is part of the Naspers group – dominate the scene,” the document said.

As a dominant market player, the online store wields a significant amount of power over the South African ecommerce market.

An example of this is evident through the process required to sell items through the Takealot Marketplace – a platform for third-party sellers to make their stock available through Takealot’s online portal.

While this marketplace has competitors, retailers have said the sales generated through Takealot completely dwarf those of other platforms.

“Takealot is probably 95% of our turnover,” one seller told MyBroadband. “For every 30-40 orders on Takealot, we maybe do one on our own website.”

The company has made a significant investment in the quality of its service and its logistics network to reach this point.

However, this will be a major focus of the Competition Commission’s investigation into the local ecommerce industry as a result of its dominant position.

 

Why Takealot beats out Makro

Takealot is South Africa’s largest online shopping platform, with over 2 000 employees and sales of around R1 billion per month, according to MyBroadband.

Where Takealot succeeded: 

  • Takealot’s dominance is due to its logistics – the acquisition of Mr Delivery in 2014 gave the business ownership over its own logistics network through the Takealot Delivery Team division (formerly Mr D Courier).
  • Takealot offers unrivalled service levels and support
  • Takealot centralised its marketplace logistics, which means shoppers who purchase a product through its platform receive a consistent experience, independent of the seller.

Where Makro falls short:

  • Makro is a trusted brand with a national network of stores, exceptional buying power, and established logistics partnerships
  • Makro’s logistics fell apart – many online shoppers wait for weeks for their Makro orders to be delivered, and their support channels are a mess
  • Makro has a decentralised model which leaves it up to third-party sellers to send packages to shoppers.

 

Big growth for Takealot and Mr D Food

By Jamie McKane for MyBroadband

Naspers has released its financial results for the year ended 31 March 2020, showing impressive revenue growth for Takealot and Mr D Food.

“Takealot, South Africa’s number 1 etailer, extended its leadership and grew Gross Merchandise Volume (GMV) 46% year on year in local currency,” Naspers said.

“Takealot’s trading loss reduced by 20% in local currency and would have improved more, but for investment in the promising food delivery business.”

Naspers said this growth was driven partly by improving gross margins and disciplined management of operating costs.

Takealot recorded revenue growth of 28% in local currency, one of the main drivers of which was the marketplace business, which grew GMV by 77% year-over-year.

“Mr D Food, South Africa’s leading food-delivery service, continues to scale as it expands the local market for food delivery,” Naspers said.

Naspers also noted that Takealot was allowed to sell and deliver only essential items in the first phase of the COVID-19 lockdown, and Mr D Food was unable to operate while takeaway restaurants were closed.

Surge in demand
The reopening of e-commerce under the national lockdown has resulted in a surge in demand for online shopping.

This, in turn, has led to Takealot and other online retailers being flooded with orders which has resulted in significant shipping delays for many products.

A source close to Takealot told MyBroadband the company is now generating close to R1 billion in sales per month – around double their usual volumes.

Takealot did not confirm these numbers when it was asked for comment, but other e-commerce players also told MyBroadband their sales have more than doubled in recent weeks.

Many other online shops have increased their expected delivery times by over a week to address logistics bottlenecks.

Lockdown will cost Takealot R350m

By Mfuneko Toyana and Nqobile Dludla for IOL

South Africa’s e-commerce giant Takealot expects the nationwide lockdown to blow a $20-million hole in its revenues, the chief executive said on Tuesday, but is hoping the government will relax rules on online sales to limit the damage.

President Cyril Ramaphosa announced a three-week lockdown on March 26, extending it by a further two weeks last Thursday, in a bid to contain the spread of COVID-19 in the country which has already seen 2 272 people infected and 27 deaths.

The Takealot business is set to take a hit of around R350-million ($20-million) in revenues, its chief executive Kim Reid told Reuters in an interview.

Takealot, owned by Africa’s most valuable company Naspers Ltd, has seen sales plummet since the lockdown began, leaving the company in “distress,” Reid said.

Under lockdown regulations that have drawn criticism from businesses and consumers, the state has banned in-store and online sales of clothing, electronics, freshly prepared food, tobacco and alcohol, and anything else government considers non-essential.

That has seen thousands of bars, restaurants and takeaway outlets close, leaving only grocery stores and pharmacies open for business and bringing the already ailing economy to a halt.

“Takealot is doing around 15% of the sales we’d normally do,” said Reid, CEO of the Takealot group which also includes food delivery service MrD Food and online clothes seller Superbalist.

The clothes and shoes selling unit had been completely shut while the food-hailing service was at around 2% capacity, mainly delivering medicines and certain foods through recently struck deals with pharma-chain MediRite and petrol station forecourts.

Takealot’s parent Naspers had said last week that many of its divisions were hurt due to the lockdown in various countries though it was too early to estimate the extent of damage.

Online retailing in South Africa is still in its infancy by global standards, accounting for 1.4% of total retail spending according to Visa.

However in recent years bricks-and-mortar retailers have been pouring money into a pivot to online shopping in a bid to adapt to the anticipated migration to e-commerce as data prices fall and the availability of cheap smart phones grows.

Reid said he was hoping the government would follow the model of China, United States and United Kingdom and allow the online retailer to sell non-essential items as “contact-less” deliveries would improve social distancing.

“If you look at the world right now, both food delivery and e-commerce has continued without any restrictions. There is every opportunity for us to operate in a contactless environment to increase social distancing in the country,” Reid said.

By Jamie McKane for MyBroadband

Takealot has confirmed that it will open a new customer centre in Johannesburg.

This follows a report by TechCentral that the online retailer was considering opening a new facility on the N1 highway in Midrand, situated on the New Road bridge.

A distribution centre at this location would cater to customers in both Johannesburg and Pretoria, it stated.

Takealot has an existing customer centre in Cape Town for customer collections, but only a distribution centre in Johannesburg – where customers cannot pick up orders.

Takealot’s plans
Speaking in an interview with MyBroadband, Takealot CEO Kim Reid confirmed they will open a new customer centre in Johannesburg where buyers can pick up purchases.

He said that Takealot will announce more information about the customer centre in 2019.

“We are busy with that, and will be able to provide more details next year,” said Reid.

He added that customers can also expect to benefit from Superbalist’s Click + Collect locations in the near future.

“What people can expect next year, is that we have rolled out 23 Click + Collect points for Superbalist and we will make those live [for Takealot deliveries],” Reid said.

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