JOHANNESBURG :South African click-and-collect firm Pargo is exploring an growth into the remainder of Africa, its CEO mentioned in an interview, betting on e-commerce progress on the continent.
Africa is forecast to surpass half a billion e-commerce customers by 2025, having proven a gradual 17 per cent compound annual progress price of on-line shoppers available in the market, in line with the International Trade Administration, a U.S. authorities company.
This progress is pushed by rising web penetration, smartphone adoption and the rising use of digital monetary companies, particularly cellular cash.
“We’re looking at an expansion strategy to move into multiple markets. We are operational with a pilot in Egypt as a second country, but we are quite seriously looking at, in the future, building a network across Africa,” Pargo CEO and co-founder Lars Veul advised Reuters.
The agency has greater than 4,000 pick-up factors positioned at retail shops throughout South Africa, together with casual township “spaza” nook retailers.
Veul mentioned the choices would span the primary economies in Africa.
“We don’t know exactly yet. So, it’s more about the countries where e-commerce is booming or expected to boom.”
The growth will even be pushed by following its present shoppers into nations the place they function outdoors of South Africa, Veul added.
In Egypt, Pargo has been testing the market since final yr with 150 pickup factors, additionally attempting to see whether or not the corporate could make it work operationally, Veul mentioned.
“Additionally, we have had to create a payment solution as 80 per cent of payments in the Egyptian market happen with cash.”
Veul, a Dutch citizen who moved to Cape Town in 2012 from Amsterdam to assist arrange on-line market Groupon in South Africa, mentioned he co-founded the corporate in 2015 after realising last-mile supply was a critical problem for e-commerce companies on the continent.
Pargo has partnered with main listed telecoms, banks and retailers together with U.S. e-commerce large Amazon, which launched in South Africa in May this yr. Amazon’s prospects accumulate their items at Pargo’s pick-up factors.
Click-and-collect permits customers to keep away from supply prices and the agony of ready for the supply, whereas additionally reducing last-mile supply prices for firms.