Pick n Pay, a South African retail giant, reported that its online business is now profitable.
This includes asap!, its e-commerce app, and its grocery delivery business in partnership with Naspers-owned Takealot.
While the South African retailer declined to reveal the revenue of its e-commerce businesses, it said that its online retail turnover grew by 48.7% year-on-year (YoY). Sales on the asap! app specifically climbed by 102.3%, contributing strongly to Pick n Pay’s online growth.
This strong performance in its online business came amid a loss for Pick n Pay in 2024. The retail company reported a R3.2 billion ($180 million) loss in 2024, after under performing in its core supermarkets business.
Why is online demand for grocery delivery going up in South Africa? Online shopping took off in South Africa after COVID. In 2024, South Africans placed 18% more online orders than the previous year. South African consumers, like others globally, have grown used to the convenience of having groceries arrive at their doorstep.
Yet, asap! is still like a fish out of water when it comes to the online retail market. Its competitor Woolworths, is South Africa’s largest online grocery store by net sales; and Checkers Sixty60 runs the most popular on-demand delivery app with over 4.5 million downloads.
Pick n Pay is still expanding its online grocery delivery service. It is building its strategy around speed. asap! claims to deliver orders in 60 minutes, yet Reddit claims show that this occasionally takes longer.
This hasn’t stopped asap!’s growth, but it is more accurate to say that the app is reaping the reward of South Africa’s online delivery boom more than anything else.
For Pick n Pay’s asap!, technology too makes a difference. In May, the company revamped its asap! app to include loyalty perks and on-demand delivery in a play to win customers. This is likely working as sales are going up.
But online success doesn’t mask deeper challenges for Pick m Pay. The retailer exited Nigeria in October 2024 to become efficient and is playing catch-up in a South African market dominated by Shoprite’s Checkers Sixty60 and Woolworths’ Dash.
South Africa’s new ICT policy could finally clear a path for Starlink
South Africa’s Minister of Communications and Digital Technologies, Solly Malatsi
If ‘South Africa and Starlink’ headlines have been fighting for your attention and losing, grab a chair—we’ll break it down.
South Africa’s ICT sector has a licensing regulation, the Broad-Based Black Economic Empowerment regulation, which requires that at least 30% of a company’s ownership is held by historically disadvantaged South Africans—like Black South Africans and women—to promote economic inclusion. Good as it seems, it often scares off international tech companies who either have to comply by selling off shares to local partners or walk away.
This rule has been a major blocker for Starlink’s entry into the country as the Elon Musk-owned internet service provider has refused to cede 30% equity to local partners. In response, South Africa’s president recently discussed a workaround to the regulation with Donald Trump.
On May 23, South Africa’s minister of Communications and Digital Technologies announced a new equity equivalent investment programmes (EEIPs) policy as an alternative to the existing BEE regulation.
What’s different? Instead of multinational companies selling shares to local partners, they can support South Africa’s digital transformation goals by investing in initiatives that may include investing in small, medium, and micro enterprises (SMMEs), building digital infrastructure, or providing skills training.
The new policy is currently open for public comment for about 30 days. If both sides come to an agreement,Starlink’s entry could mean broader rural connectivity, increased digital inclusion, and could drive country-wide economic growth.
While Starlink had previously cited the local ownership requirements as a reason for its absence in the country, the introduction of this new policy finally paves the way. Now that the red carpet’s been rolled out, will Starlink actually show up?
