Two local businesses see a gap as food and grocery delivery companies neglect townships

18 July 2024 | Innovation and technology

By: Jason Woosey – IOL Business Report

Delivery services have revolutionised the way many South Africans shop for things like groceries, but this convenience is often not extended to all parts of our cities.

However two South African entrepreneurs have taken it upon themselves to challenge that status quo.

Freddy Mahhumane of KasiD and Godiragetse Mogajane of Delivery KA Speed SA saw a gap in the food and grocery delivery market as established services were avoiding townships due to perceptions of inadequate infrastructure and high crime rates.

After partnering with Spar’s home delivery service, SPAR2U, the two delivery companies sought to overcome the aforementioned obstacles by hiring unemployed township residents who have an intimate knowledge of their areas.

Innovative ownership plans enabled employees to acquire delivery vehicles, with a view to helping them attain financial independence in the long run.

“The success of Delivery KA Speed and KasiD in townships underscores the transformative potential of community-focused initiatives enabled through partnerships such as these with SPAR2U”, says Mpudi Maubane, communications manager at Spar Group.

“With a combined workforce of hundreds of riders, these companies have not only facilitated the delivery of goods but have also contributed to skill development and educational pursuits among employees.”

Spar’s partnership with KasiD and Delivery KA Speed SA currently serves areas such as Kempton Park, Kaalfontein, Glen Marais, Ivory Park, Mameodi and Hammanskraal.

The two companies are also looking at expanding into neighbouring countries such as Botswana and Namibia.

The SPAR2U app enables deliveries for purchases of R100 or more, with a basket limit of 60 items.

The retailer says this service could help to reduce the financial burden on township residents who sometimes spend significant amounts of money travelling to shops.

“As township delivery services continue to evolve, they serve as a catalyst for socio-economic progress fostering empowerment, and community development”, Maubane concluded.

Initiatives such as these are on the rise in Mzansi. Earlier this month Shoprite launched an online shopping and bulk delivery service for spaza shops. This new Cash & Carry digital platform aims to eliminate the need for shops to store excess inventory.