Biggest hurdles for Sixty60 and Spar2U in South Africa

Diverse working environments, power outages, adverse weather, and month-end surges in in-store and online traffic are among some of the most significant challenges on-demand grocery delivery providers face in South Africa.

This is according to Shoprite and Spar, who run the Checkers Sixty60 and Spar2U on-demand delivery services.

Shoprite told MyBroadband that it must constantly refine its platform in addition to navigating power outages, adverse weather, and surges in demand.

The Checkers Sixty60 commitment is clear: shop in 60 seconds, with orders delivered in 60 minutes.

“Delivering on that commitment at scale is no small feat. Since launch, we’ve grown our product assortment from 500 to over 30,000 items — all while maintaining a fast, intuitive, and personalised shopping experience,” it stated.

“This has required constant refinement of our search algorithms, user experience (UX) design, and personalisation tools, allowing customers to easily re-order favourites or browse personalised recommendations.”

Shoprite said delivering on the Sixty60 60-minute delivery promise requires some “operational magic.” Despite its complexities, the service delivers 95% of orders on time.

“This involves coordinating a fleet of more than 8,000 delivery drivers across South Africa daily, while navigating variables like load-shedding, weather, month-end surges in traffic, and other unexpected challenges,” it said.

It noted that offering hyper-accurate delivery windows for general merchandise categories can be particularly challenging.

“Unlike other players who promise a delivery day, we promise a delivery hour, made possible through bespoke route optimisation and demand forecasting software,” Shoprite stated.

The real-time nature of the Checkers Sixty60 offering adds to the company’s complexities, but it is essential for customers to see what is actually available to minimise frustration and maintain trust.

“With real-time pricing, stock, and range information, we’ve invested significantly in our cloud infrastructure and data systems to handle the scale of customer interactions,” said Shoprite.

One of Checkers Sixty60’s major focus areas is its substitution system.

“With perishable and high-value items, product selection must be spot-on. Our customer service team plays a crucial role in resolving issues swiftly and effectively,” it said.

“Substitution logic, particularly with fresh produce or premium items, is a major focus area and one that continues to evolve with input from our customers.

Lastly, Shoprite said offering a seamless customer experience involves constant balancing and range expansion.

“The more we offer, the more carefully we must curate and personalise to keep the app intuitive and fast,” it said.

The retailer added that the challenges it has faced have evolved with scale.

“Our goal remains unchanged: to deliver an affordable, fast, and reliable service that meets the daily needs of our customers,” said Shoprite.

Diverse environments are challenging

Dax Puttergill, e-commerce operations manager at Spar South Africa, told MyBroadband that adapting the company’s last-mile delivery model to urban, rural, and township environments is challenging.

While its model is similar to competing players in urban areas, rural areas and townships introduce complexities.

“In rural areas, road conditions can vary, and delivery distances tend to be much longer,” said Puttergill.

“This requires us to ensure that we consider factors such as delivery vehicle types and turnaround times.”

In township environments, the Spar must consider the specific needs of each community, such as safety, accessibility, and the lack of formal infrastructure.

Puttergill emphasised that these complexities haven’t become a hindering factor for the Spar2U on-demand delivery service.

“We are committed to the communities we serve, which means remaining agile, continuously refining our delivery models, and leveraging local knowledge to ensure Spar2U is accessible and efficient,” he said.

MyBroadband also asked Woolworths and Pick n Pay about their biggest challenges regarding their on-demand delivery services, but they hadn’t answered our questions by publication.