Global reach is critical

The company currently offers 1,100 lockers situated around the country

• Customers also expect one-stop solutions in digital world

message and an e-mail with a unique pin and QR code, either of which can be used to retrieve the package. The receiver has 36 hours in which to collect the package from the locker, after which it is sent to the closest pudo kiosk or depot. Most lockers are open 24/7 although ones located in malls adhere to centre hours so packages can be collected whenever it s convenient. The Courier Guy is not the only company to introduce lockers. DSV has also introduced an anytime courier option called DSV Lockers which means that neither the driver, parcel, recipient nor sender needs to be at the same place at the same time. Strategically positioned at fuel forecourts primarily Engen service stations and other publicly accessible locations, they are a direct-to-consumer service which cuts costs and increases efficiencies. Similar to pudo, customers are sent an SMS and email notification when their parcel is ready for collection and are given 48 hours to collect the parcel. The introduction of lockers is an exciting new development in the logistics space, says Saepa CEO Garry Marshall. It offers an additional layer of convenience for recipients who aren t sure where they are going to be at a given time of the day.

Accelerated by the Covid-19 pandemic, increasing global connectivity and the consequent growth of digital marketplaces, global crossborder and domestic e-commerce has experienced significant growth in recent years.

Online shopping increased 77% year on year in SA in the early part of the pandemic, accelerating the innovation and adoption of digital commerce by half a decade. Shopping, working and socialising online became commonplace.

According to a report by eMarketer, global cross-border ecommerce sales reached $4.28-trillion in 2020, a 27% year-over-year growth The ability of the last mile couriers to adapt to this new normal has been critical to their success. The transformation is underpinned by a changing demographic with millennials increasingly fulfilling decisionmaking roles and expecting mobility and choice on last mile deliveries. This calls for innovation and because supply and demand are no longer necessarily housed within the same country, global solutions and reach both globally and intra-country are critical in providing one-stop solutions to a demanding audience. By way of example, the complexities post-Brexit for UK-based e-commerce companies into the European market varies vastly from those in SA, the latter characterised by its own unique set of wellpublicised challenges. Yet, there remains a common thread of traditional logistic principles that require optimisation. These include scaleto leverage supplier pricing which translates into affordable services, bi-directional load balancing on international lanes and global presence to provide control in delivering a seamless, visible service to end consumers.

Tommy Erasmus, group CEO of SkyNet Worldwide Express, explains that SkyNet found itself in an ideal position to react to this changing environment in that we had access to a global network of SkyNet branches with strong domestic networks and global coverage combined with an entrepreneurial agility to adapt quickly. An example of this agility was providing solutions to UK-based SMEs where access to the European market had become difficult due to the introduction of onerous crossborder vat and duty processes post-Brexit.

By partnering with Eurora, a company geared to providing seamless translation of product description into legally required Harmonised System (HS) codes combined with giving SMEs access to Import One Stop Shop import validation not readily available to smaller exporters, we have been able to restore market access and competitiveness for these SMEs. The automated solution is not only available to UK customers but to all customers globally including South African exporters into Europe and anywhere else in the world. The ability to communicate in advance to the end consumer the full array of traditionally hidden VAT and duties payable on import, and enable payment upfront, not only reduced costs for the consumer but provides a seamless and accelerated clearing and delivery process on arrival in the import country of delivery.

SA, however, needed different solutions in this space.

SkyNet has responded to the need for improved security by partnering with security company Fidelity to deliver high value items in cash-in-transit vehicles

As the e-commerce space evolves and matures, a critical element has become the speed of delivery. Consumers have become increasingly accustomed to delivery of their online purchases often within minutes rather than days. Driven primarily by the grocery sector, this expectation, together with the visibility in delivery tracking on a real time, live basis is fast becoming an expectation within other e-commerce sectors. Locally grown online courier companies such as Droppa are offering their mobile techdriven on-demand services to corporate SA with ambitions to expand internationally following their partnership with couriers such as SkyNet. Their ability to have hyper local presence within suburban metropolitans gives them access to consumers within minutes at an affordable price point. This space within the logistics world is paving the way to what no doubt will become the new norm. As a South African company with an aggressive acquisition strategy and investment into new mobile technology companies such as Droppa, we are confident that we can rival and improve on any global competitor s e-commerce offering, says Erasmus.

Grocery delivery services ramp up

Fitch Solutions, a division of the global financial information services company Fitch Group, says grocery delivery services are fast becoming a mainstream offering in SA, with a significant rise in first-time users. It expects to see a rapid increase in the e-groceries sector in the next seven years, particularly among urban and wealthier consumers looking for convenience.

Established grocery retailers, including Checkers, Pick n Pay and Woolworths, have all introduced an e-commerce offering in recent years using courier and logistics providers to handle deliveries.

The most successful player in this space is Checkers with its Sixty60 grocery deliver app which has re-positioned the brand from a convenience perspective. According to holding company Shoprite s latest annual financial results, Checkers Sixty60 continues to maintain its growth trajectory. The app recorded a 150% increase in annual sales and is the top local grocery app with 2.4-million downloads. The retailer currently services Sixty60 customers from 300 stores around the country.

RTT On-Demand, a division of the RTT Group, has played a key role in last mile logistics for Checkers Sixty60 from its launch. To enable more innovation and to protect the intellectual property of the Sixty60 sales channel, in late 2021 Shoprite entered into a joint venture with RTT Group. Both parties own 50% of the

Above: Spar has partnered with SkyNet Worldwide Express and Inhance to provide the last mile delivery of its SPAR2U delivery service. Right: Diederick Stopforth, sales and marketing executive at SkyNet joint venture logistics entity.

Pick n Pay offers online grocery shopping through an on-demand service called Asap.

In 2022, the retailer launched a new PnP Groceries section on Takealot s Mr D platform, with orders delivered by Takealot s delivery fleet in a bid to expand its on-demand delivery service capabilities. PnP Groceries is intended to be available

30 minutes grocery delivery is a service offered by Yassir Express, which launched in Gauteng in December 2022 nationwide by the end of 2023.

Spar was a late arrival to the same-day grocery delivery space, only launching in March 2022. It has partnered with SkyNet Worldwide Express and Inhance to provide the last mile delivery of its SPAR2U delivery service.

Diederick Stopforth, sales and marketing executive at SkyNet, reveals that unlike many of its competitors, SkyNet is leaning towards a predominantly electric delivery fleet utilising both two-wheel and three-wheel variants.

He says: Beyond the obvious environmental benefit in reducing carbon footprint, there are operational gains in lowering the cost per unit as well as capacity in the threewheel vehicles to deliver significantly larger orders.”

As a late entrant to the market, Spar and its partners have been able to adapt its model from the early mover learnings. Our intention medium term is to optimise the delivery model by serving all tenants of any given centre through the same delivery fleet. The larger loading capacities of the threewheelers means that we can consolidate a number of orders in the same vehicle, he says. This has many advantages. Not only does it offer retailers delivery at a reduced cost, but it benefits gig economy drivers who will be able to reduce the costs in serving multiple revenue-generating deliveries on a single delivery run. In 2022 Uber Eats launched Uber Eats Market in partnership with Smart Kitchen Co, initially as a pilot project in some areas of Cape Town and later to nine online store presences around SA. It plans to have markets operating in more than 30 locations by the end of March.

A number of other e-grocery players have also entered the local market including Algerian on-demand food and grocery delivery platform Yassir Express and Zulzi. The former, which has become popular in a number of north African markets, launched in Gauteng in December 2022, offering a high-speed delivery service in just 30 minutes based on a dark store model. Zulzi is another addition to the on-demand grocery delivery sector, promising delivery in an ambitious 15 minutes. The platform provides delivery via 300 independent drivers.