Woolies Dash competes with Checkers and Pick n Pay

In recent years, South Africa has seen a surge in food delivery services, with several supermarket chains creating their own versions of a delivery app.

Although Checkers Sixty60 has dominated the field, other services such as Woolies Dash are catching up.

According to a 2016 eMarketer (now Insider Intelligence) analysis, the South African internet meal delivery sector would be worth R34 billion by 2023. In 2024, the grocery delivery category is predicted to rise by 16%.

Checkers Sixty60 by Shoprite is the largest grocery app in the country. According to the company’s most recent annual report, the service has been implemented in 394 locations since its inception in 2019.

Sixty60 also saw a 150% growth in yearly sales and is today the most downloaded grocery app in South Africa, with 2.4 million downloads.

Sixty60 was founded on the concept of allowing clients to purchase goods in 60 seconds and have them delivered in 60 minutes. The ease of the service is the primary reason for its success.

The delivery service enables Checkers to compete in the high-end sector, which has previously been controlled by Woolworths.

Woolworths, on the other hand, is fighting back with its own supermarket delivery app, Woolies Dash.

Dash, like Sixty60, allows consumers to purchase goods through the app and have them delivered in 60 minutes.

Dash is only offered in 78 locations across the country and hence lacks Sixty60’s reach.

Nonetheless, Woolworths informed Daily Investor that Dash is still expanding fast and that the service is being pushed out in additional locations across the country.

Rush sales at Woolworths have increased 150% in the last year.

Dash’s recent integration with the company’s current platform, the Woolworths App, distinguishes it from other supermarket delivery services.

This app already has a membership base, and with the addition of Dash, it now has over 2 million customers.

Furthermore, by combining many platforms, Woolworths clients may purchase groceries as well as fashion, cosmetics, and other things through a single site.

Woolworths is South Africa’s first retailer to provide an omnichannel solution, distinguishing it from competitors such as Sixty60, which solely sell food.

“Additionally, Woolworths is the only retailer in South Africa to offer cold chain in both our regular deliveries as well as our on-demand Dash service, reinforcing our commitment to quality freshness throughout our value chain,” the company told Daily Investor.

Pick n Pay (PnP) is another major player in this sector, offering supermarket delivery through two channels: its grocery app, PnP Asap!, and its relationship with Takealot-owned Mister D.

Asap!, like Sixty60 and Dash, allows users to purchase goods on the app and have them delivered in 60 minutes.

The service is a relaunched version of PnP’s on-demand internet offering that has generated excellent results, according to the company’s most recent annual report.

The app’s sales have increased by 300% since its introduction in August 2021.

PnP has also just teamed with Mr D, one of the most popular meal delivery applications in South Africa.

This collaboration follows a similar concept to Woolies Dash, in which consumers may purchase things through an existing platform.

By partnering with Mr D, PnP gains access to the delivery service’s established user interface design, 2.5 million active customers, and delivery fleet of 15,000 scooters.

This strategy has also delivered positive results for PnP, as the business recorded an 82% increase in online sales during H1 FY23.

The following table compares some of the most important participants in the South African eCommerce retail sector.