The owner of Takealot, Kim Reid, has been instrumental in transforming the online retail landscape in South Africa. From its humble beginnings in a small warehouse to becoming the country’s largest e-commerce platform, Takealot’s journey is a testament to innovation, strategic vision, and customer-centricity.
Today, Takealot is owned by Naspers, a global consumer internet group, but its story is deeply intertwined with Reid’s leadership and the company’s ability to adapt to a rapidly changing market.
The Early Days: Take2 and the Birth of Takealot
Takealot’s origins trace back to 2002 when it was founded as Take2 by Neil Smith, Waine Smith, and Jose Pereira. The company initially focused on selling books and DVDs, a common niche for early e-commerce platforms. At the time, South Africa’s e-commerce industry was still in its infancy, with limited internet penetration and a lack of trust in online shopping. Take2 struggled to gain traction, but it laid the groundwork for what would later become Takealot.
In 2010, US-based investment firm Tiger Global Management acquired Take2. Tiger Global, known for its investments in emerging markets, saw potential in South Africa’s growing internet user base and the untapped e-commerce market. The firm brought in Kim Reid, a seasoned executive with a background in finance and technology, to lead the company.
Rebranding to Takealot: A New Vision
One of Reid’s first major decisions was to rebrand Take2 to Takealot. The name change was necessitated by a trademark dispute, but it also symbolized a fresh start. Reid’s vision was clear: to create the largest, most customer-centric online shopping destination in Africa.
In June 2011, Takealot officially launched with a comprehensive marketing campaign to introduce the brand to South Africans. The company started with a modest product range, primarily books and DVDs, but quickly expanded to include electronics, home goods, and fashion.
Strategic Moves That Shaped Takealot’s Success
- Mergers and Acquisitions
One of the most pivotal moments in Takealot’s history was its merger with Kalahari in 2014. Kalahari, one of South Africa’s earliest e-commerce platforms, had struggled to compete with global giants like Amazon. The merger allowed Takealot to consolidate its market position, eliminate a key competitor, and leverage Kalahari’s customer base.Additionally, Takealot acquired Mr Delivery in 2014, which later evolved into Mr D Food and Mr D Courier. This move gave Takealot control over its logistics network, enabling faster and more cost-effective deliveries. - The Marketplace Model
Inspired by Amazon’s success, Takealot launched its marketplace in 2014, allowing third-party sellers to list their products on the platform. This move not only expanded Takealot’s product range but also created opportunities for small and medium-sized enterprises (SMEs) to reach a broader audience. Today, marketplace sales account for over 52% of Takealot’s gross merchandise value. - Investment in Technology and Infrastructure
Takealot’s success is underpinned by its robust logistics and distribution network. With warehouses in Cape Town, Durban, and Johannesburg, the company can store millions of products and dispatch thousands of parcels daily. Its innovative pickup points, now numbering over 100, provide customers with flexible delivery options.
Takealot’s Ownership Structure: Naspers and Beyond
While Kim Reid played a crucial role in Takealot’s growth, the company is now owned by Naspers, Africa’s largest company by market capitalization. Naspers acquired a majority stake in Takealot in 2015 and has since increased its ownership to 100%.
Naspers Shareholders
Here’s a breakdown of Naspers’ major shareholders as of 2023:
| Shareholder | Percentage Ownership |
|---|---|
| Public Investment Corporation (PIC) | 16.04% |
| M&G Investment Managers | 0.76% |
| Satrix Managers | 0.65% |
| Old Mutual Investment Group | 0.32% |
| Other Institutional and Retail Investors | 82.23% |
The remaining shares are held by a mix of institutional and retail investors, reflecting Naspers’ widespread appeal as a global internet giant.
Challenges and Future Opportunities
Despite its dominance, Takealot faces increasing competition from local players like Checkers Sixty60 and Mr Price, as well as the looming threat of Amazon’s entry into the South African market. To stay ahead, Takealot has launched initiatives like TakealotNow, a one-hour delivery service, and expanded its partnership with Pick n Pay to offer grocery deliveries via the Mr D app.
However, profitability remains a challenge. Takealot reported a R223 million loss in 2022, but with Naspers’ backing, the company has the resources to invest in growth and innovation.
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Conclusion: The Legacy of the Owner of Takealot
The owner of Takealot, Kim Reid, laid the foundation for what is now South Africa’s leading e-commerce platform. His strategic vision, coupled with Naspers’ financial backing, has positioned Takealot to capitalize on the growing demand for online shopping. As the company continues to innovate and adapt, it remains a key player in shaping the future of retail in Africa.
For businesses and consumers alike, Takealot’s story is a reminder of the power of perseverance, innovation, and customer focus. The owner of Takealot may have changed, but the company’s mission to revolutionize online shopping in Africa remains unchanged.
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