Pargo Creates Access To Ecommerce For Informal Settlements Across South Africa

The biggest challenge etailers face in South Africa is that of logistics. With over 21% of South Africans living in informal settlements and over 35.7% in rural areas, delivery, a supposedly simple task, becomes one fraught with complications. Inconclusive addresses, subpar infrastructure and, in some cases, even safety concerns, make home delivery impossible and result in a massive chunk of the population having limited access to goods and services. It is this complication Pargo seeks to solve through their alternative to home delivery, called Click & Collect.

Pargo’s Click & Collect gives consumers the ability to shop online and collect their orders at nearby Pargo Pickup Points of their choice. These pickup points function as centralised hubs for convenient collections, deliveries and returns for both consumers and etailers.

For people living in townships, a pickup point means they do not have to spend money travelling to the post office for deliveries or to brick-and-mortar stores to do their shopping, instead, people can enjoy the convenience of online shopping safely delivered nearby. On the other hand, etailers get the benefit of saving costs through simplifying deliveries to easily accessible pickup points as well as reaching a broader consumer base.

HomeChoice is one such etailer who, through their partnership with Pargo, solved their challenges of reaching their customers that live in informal settlements while simultaneously avoiding costly home delivery.

Initially reliant on the unreliable South African Postal Service (SAPOS), HomeChoice now has access to Pargo’s entire network of over 2,500 pickup points which covers more than 87% of South Africa’s postal codes. In the process, the homeware brand also added additional pickup points in informal settlements using revamped shipping containers, thereby granting convenient access to their products for all South Africans. Over 310,000 orders have since been fulfilled through this innovative partnership.

“Pargo enabled us to have a vast footprint of collection points near our customers. The solution was quick to deploy […] We now offer collection of parcels at more locations with better communication and extended collection times”, says Christiaan Greyling, Supply Chain Engineer at HomeChoice.

These logistical challenges are not unique to the South African consumer landscape. 75% of Sub-Saharan Africans live and work in areas with limited access to goods and services, creating a massive opportunity for broad logistical intervention. It is this gap in the supply chain that inspires Pargo’s grand vision of creating access for anybody in Africa.

“It is unimaginable how immense the impact of having a Pargo Pickup Point within 5 minutes reach of every African would be for the continent, especially given that we’ve only seen Ecommerce scratch the surface of its boundless potential in this market.”, says Derk Hoekert, CEO at Pargo.

If you would like more information on incorporating Pargo’s Click & Collect delivery services into your business, click here or call 021 447 3636.