Takealot under pressure

Hanno Labuschagne

Hanno Labuschagne

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Takealot under pressure

Takealot’s latest financial results showed that the ecommerce giant is feeling the impact of increased competition, labour issues, and a Competition Commission investigation.

Takealot’s results for the six months ended 30 September 2022 showed that it grew gross merchandise value (GMV) by 15% and revenue by 13%.

[Daily Investor]
 
It shows you why Amazon has such cut throat labour practices to keep costs down.
They save costs where ever possible.
It's such a tight ship industry.
You cannot afford to be reckless in spending anywhere.
Takealot gonna have to pull in the purse strings all over.
 
Takealot deliveries used to nearly always be next day deliveries.

Then they started using labour brokers and treated their employees like crap.

They got some short term financial gains, but delivery times slipped by 1-2 days. So they lost their logistical edge and now they get long term pain.

Always treat employees well, they are instrumental in any company's success.
 
Sapphiron said:
Takealot deliveries used to nearly always be next day deliveries.

Then they started using labour brokers and treated their employees like crap.

They got some short term financial gains, but delivery times slipped by 1-2 days. So they lost their logistical edge and now they get long term pain.

Always treat employees well, they are instrumental in any company's success.
Click to expand...
Yep. Everything is at least a day later now
 
just sell more of those overpriced whisky's that "ACA Liquors" list on your site, profit through the f-ing roof my bru!
 
Sapphiron said:
Takealot deliveries used to nearly always be next day deliveries.

Then they started using labour brokers and treated their employees like crap.

They got some short term financial gains, but delivery times slipped by 1-2 days. So they lost their logistical edge and now they get long term pain.

Always treat employees well, they are instrumental in any company's success.
Click to expand...

Given the absymal state of logistics in general in SA, however, I still rate Takealot as one of the fastest to deliver (at least in my experience).
 
Sapphiron said:
Takealot deliveries used to nearly always be next day deliveries.

Then they started using labour brokers and treated their employees like crap.

They got some short term financial gains, but delivery times slipped by 1-2 days. So they lost their logistical edge and now they get long term pain.

Always treat employees well, they are instrumental in any company's success.
Click to expand...

But that will cost more and then we don't want to pay the higher fees and then do not use Takealot and then they have to fire people and then...
 
Dono guys, I can't really complain about TaL. Always had an excellent experience with them. Ordered something yesterday during Black Friday, delivery date was 28.11 (Monday) got it delivered today 1pm. Outstanding service in my books. But still looking forward to that Amazon store.
 
I don't know much about these things but is this just not a paper loss (the profit looks bad but they are pouring funds into assets?) They are spending money left right and centre.
 
supersunbird said:
But that will cost more and then we don't want to pay the higher fees and then do not use Takealot and then they have to fire people and then...
Click to expand...
Here is the thing, it does not cost more. Well treated workers perform better.
 
Hehehe...haha....hahahahahahaha... wait...

EDIT:

Hamster said:
They're building a massive white elephant, that's what they're doing.
Click to expand...

Takealot CEO says it will be profitable in 2 years

Takealot used to be my number 1 choice. Not anymore. Delivery was always quick now it takes days. Thanks for others like Loot.co.za It seems then that the problem lies with you and not takealot. I mean, just think about the trauma of not getting your order in a day or 2.
mybroadband.co.za mybroadband.co.za

Two years bro. Times up!
 
Sapphiron said:
Takealot deliveries used to nearly always be next day deliveries.

Then they started using labour brokers and treated their employees like crap.

They got some short term financial gains, but delivery times slipped by 1-2 days. So they lost their logistical edge and now they get long term pain.

Always treat employees well, they are instrumental in any company's success.
Click to expand...
Is that even part of their value proposition though? Deliveries are very much acceptable still. I'd be surprised if anyone avoids Takealot these days because delivery could take an extra day compared to the fastest couriers out there. Especially when shipping is usually free and returns are always free.

If I had to take a stab at why Takealot is struggling, I'd say it's because their recommendations are trash. Compared to how good Amazon is at showing me relevant products while I'm browsing, Takealot either just shows me random nonsense or stuff I'm not interested in from the same product category.
 
They have no quality control on hat they stock. I return an average of 40% of what I buy. That alone is a crippling overhead If it is widespread
 
Problem is places like makro is now also having online only deals from 3rd party sellers. When everyone is selling items from manufacturers you better fix your site so it is the easiest to find items. I am surprised how almost no items in my amazon wishlists are discontinued vs takealot where almost everything is supplier out of stock forever.
Because takealot opened the can of worms of 3rd party sellers they better jack that service up because the other sites like makro are going to do the same.

takealot also don't stock food that expires which will make places that do like makro and pick n pay more attractive.

I still think takealot owners wants amazon to buy them out. That is why they don't care about profit but just number of customers.
 
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