Over the last decade, South Africa has seen a rise in grocery delivery services, with leading retailers releasing their own versions of a delivery app.
Shoprite Holdings subsidiary, Checkers Sixty60, has been dominating the sector but other platforms like Woolies Dash are catching up quickly.
According to a recent study by Insider Intelligence, SA’s online food delivery market is estimated to reach R34 billion this year, and will further grow by 16% in 2024.
Checkers Sixty60 is by far the largest grocery app in the country. Shoprite Holdings reported that the online service has been rolled out to over 394 stores since launching in 2019. With a 150% increase in annual sales, the app has 2.4 million downloads.
Sixty60’s convenience is the main reason for its success
The app was built on the basis that clients could order their groceries in 60 seconds and have them delivered to their homes in 60 minutes. Sixty60 allows Checkers to penetrate the high-end market, which was traditionally dominated by Woolworths.
However, Woolworths is fighting back with Woolies Dash, its own grocery delivery app. Dash allows users to order groceries via the app, which will be delivered in 60 minutes. So far the service is available in 78 stores in the country.
According to Woolworths, Dash is growing rapidly and will soon be rolled out to more stores nationally. What sets Dash apart from competition is its recent integration with the company’s existing platform, the Woolworths App.
The Woolworths App has an existing subscriber base, and with the recent integration of Dash, it now has more than 2 million subscribers, making Woolworths the first retailer in SA to offer this omnichannel solution.
This combination enables Woolworths clients to purchase fashion, groceries, beauty and other products using a single platform.
Another player in the market is Pick N Pay, which offers grocery delivery through two channels — its grocery app, PnP Asap!, and its partnership with Mr D — Mzansi’s favourite convenience delivery service.
Asap! offers a service whereby customers can order groceries on the app and have them delivered within 60 minutes. Formerly called Bottles, the service has achieved impressive results, since relaunching in late 2021, it has grown by 300%.
Pick N Pay also recently partnered with Mr D, the deal with Mr D allows Pick N Pay to take advantage of the delivery service’s existing user-interface design, its 2.5 million-strong active customer base, and its delivery fleet of 15 000 scooters.
The table below compares Checkers Sixty60, Woolies Dash & Pick N Pay Asap!
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