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The rise of e-commerce has not only changed the way we shop – it has reshaped the entire customer experience from end to end. With the click of a button, consumers across the country can access the things they want and need without stress or haste. As opportunities in the e-commerce space become clearer, traditional brick and mortar retailers are also rapidly expanding their online presence, which increases competition and gives customers more choices and better prices.
Historically, the number of people who shop or order food online has been correlated with income and location. As you might expect, the largest share of trade is among higher-income consumers in cities and towns compared to those in remote areas. Rural service delivery is often more expensive, population density is lower, there are no economies of scale, and finding customers who often do not have an official address can make navigation and door-to-door delivery difficult.
At Takealot, innovation has taken place from the warehouse to the doorstep to bring more customers into the e-commerce fold. We know that, as technology and digital tools become more accessible, it provides unique opportunities for customers of all locations and income levels to participate in the global economy, thereby promoting equitable and inclusive growth. By simply placing a pin on your location, Takealot can now deliver to customers without a formal address, enabling rural areas to receive critical services. This is an exciting development, which allows us to deliver to markets that have historically been underserved.
Takealot.com opened in 2011, operating out of a small suburban home with stock stacked in a garage. Our footprint has since expanded to reach every corner of South Africa, with 90 Pickup Points, over 13,000 driver partners and over 90 franchise branches serving over three million customers. And we extend our footprint. This expanded network is a great equalizer for those living in Lusikisiki, Tembisa or Umlazi who have the same access to our platform and the 8,000 small businesses we enable as those living in Sandton or Camps Bay. Our network of local shipping partners know local roads, lanes and shortcuts. They are proud to serve consumers from all walks of life, from the Western Cape to Limpopo.
Of course, the positive effects of e-commerce extend beyond individual customers. Entrepreneurs who have become sellers on Takealot.com or have restaurants registered on MrD, have been able to access more effective and reliable opportunities smoothly. One of the biggest challenges facing SMEs is access to markets. Our business model solves these problems to increase the chances of success for many small businesses. The platform ecosystem also contributes to the structural transformation of the economy by formalizing transactions and employment and allowing more sellers and SMEs to participate in inclusive growth.
E-commerce is a gamechanger for these businesses and is a key sector that will drive the level of economic growth needed to lift people out of poverty and create jobs.
The Takealot Group ecosystem, together with our partners, is helping to address the unemployment challenge in this country by supporting more than 33,000 jobs in SA. And the majority of orders taken by Takealot are delivered by market sellers at home and are picked and packed by many young people who work in our distribution center,
For companies to operate in thriving communities and create sustainable projects, we must be responsible for creating an environment where everyone, regardless of where they live or their family situation, is given the opportunity to thrive.
As a homegrown business, we are honored to support South Africa and help shape what it means to be a more digitally active, inclusive economy that allows people from all socioeconomic backgrounds to have fair access to relevant markets.
E-commerce is the great equalizer, and we are committed to building the e-commerce ecosystem in South Africa to benefit all who live there.