Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Why the JSE is keeping its AI agents on a short leash - Alicia Greenwood

      Why the JSE is keeping its AI agents on a short leash

      30 October 2026
      Free Office, free Photoshop: AI is breaking Big Tech's business model

      Free Office, free Photoshop: AI is breaking Big Tech’s business model

      30 October 2026
      Crypto's biggest heist exposes the weak link in exchange security

      Crypto’s biggest heist exposes the weak link in exchange security

      30 October 2026
      Dis-Chem's earnings slide as its tech spending doubles

      Dis-Chem’s earnings slide as its tech spending doubles

      30 October 2026
      Intel's comeback hits a wall

      Intel’s comeback hits a wall

      30 October 2026
    • World
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
    • In-depth
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
    • TCS
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Retail and e-commerce » E-commerce: couriers charging more for risky township deliveries

    E-commerce: couriers charging more for risky township deliveries

    Surcharges for high-risk zones could hamper growth of e-commerce in South Africa’s townships.
    By Nkosinathi Ndlovu16 July 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    E-commerce: couriers charging more for risky township deliveries
    Some townships are seen as higher risk for last-mile logistics companies. Image generated in OpenAI’s Dall-E

    Townships and rural and outlying areas present unique logistical challenges that constrain the growth of e-commerce in these regions.

    At times, distance from main centres causes the cost of deliveries to skyrocket. In other instances, the difficulty of fulfilling a delivery is increased by high crime levels.

    Now delivery companies have resorted to adding surcharges to mitigate the risks associated with logistics in some townships.

    Couriers are adding a surcharge of around R100 to R150 on top of the delivery fee to cover their security costs

    “Couriers are adding a surcharge of around R100 to R150 on top of the delivery fee to cover their security costs to ensure that these parcels stay safe,” said Lars Veul, CEO of pick-up, drop-off (“Pudo”) specialist Pargo.

    According to Veul, poor addressing systems and the poor quality of mapping software in townships often lead to a higher number of repeated delivery attempts before a parcel reaches its intended recipient. Coordinating deliveries for when recipients would be home is another headache.

    “People aren’t sitting around waiting for a parcel to be delivered. They are at work, the doctor or picking up their kids from school, and missed deliveries increase the cost for couriers,” said Veul.

    The notion of free delivery for customers is also giving way to pay-for models as e-commerce companies move away from a paradigm where they were trying to show the value of e-commerce to the customer, to one where they want to make their operations profitable, he added.

    High risk

    This, he said, is leading to customers bearing more of the delivery costs than they did before.

    Jayson Joubert, operations director at Order Kasi, a last-mile logistics company specialising in township deliveries, told TechCentral that another reason surcharges are added in certain areas is because it is difficult to source drivers – who may believe these areas to be too high risk – without offering them additional incentives. At other times, said Joubert, the surcharge is to cover the cost of having an additional person in the vehicle to take care of security.

    Customers who know they live in dangerous areas are often the first to tell drivers to meet them at a safer point such as the nearest police or petrol station, he said.

    “We hire local drivers who are invested in the community. They also use their own vehicles instead of branded fleet vehicles that are likely to attract the attention of criminals. That is how we reduce risk in our operations.”

    The unique challenges presented by township logistics have led to a mushrooming of specialist last-mile businesses similar to Order Kasi. Godiragetse Mogajane, founder and CEO of Delivery Ka Speed, a company in Hammanskraal north of Pretoria, does fulfilment for Bidvest Waltons, Big Save supermarkets and Spar’s Spar2U app – a Checkers Sixty60 competitor.

    Pargo CEO Lars Veul

    Mogajane said using drivers who live in the area helps deal with poor addressing by allowing customers to use landmarks to describe where they are. The system works so well that Delivery Ka Speed has embedded the description into its app as a requirement when customers place an order.

    Pargo’s Veul said that as a laggard in emerging markets in e-commerce growth – about 4% to 6% of total retails sales are through e-commerce in South Africa against more than 15% in similar markets like India and Brazil – Pudo firms are going to play an important role in keeping the cost of delivery low and incentivise consumers to adopt e-commerce.

    In Pargo’s experience, the cost of delivering parcels to rural and outlying areas can drop by as much as 80% when using Pudo pick-up points, depending on the volumes supported. Pudo networks also make use of existing logistics networks, meaning the risk profile does not fluctuate so much as to necessitate surcharges for different regions.

    Read: Bob Group says smart lockers will drive online shopping growth in SA

    Veul said in future the Pudo model will work in tandem with door-to-door deliveries to maximise customer convenience.

    “The pick-up point model is much more efficient, and so the price per parcel drops. Also, for the online user, it increases convenience and optionality. It’s not about one or the other, it’s about having the two next to each other. You will still have consumers that prefer a door delivery and you will have consumers that prefer a pick-up point delivery,” said Veul.  – © 2024 NewsCentral Media

    Read next: What’s holding up township e-commerce

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Delivery Ka Speed Godiragetse Mogajane Lars Veul Order Kasi Pargo Pudo
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMoves afoot to revive world’s biggest-ever power project – in Africa
    Next Article Thinking of going solar at home? Read this first

    Related Posts

    Spar2U to get a do-over

    Spar says it’s gaining ground in on-demand groceries war

    9 May 2025
    Pargo considers foray into rest of Africa - Lars Veul

    Pargo considers foray into rest of Africa

    18 October 2024
    Vodacom bundles Amazon Prime across its post-paid base

    Amazon launches in South Africa … without any Amazon products

    7 May 2024
    Company News
    How to protect your business from digital banking scams and fraud - Standard Bank

    How to protect your business from digital banking scams and fraud

    30 October 2026
    Paratus continues to reshape connectivity in Namibia

    Paratus continues to reshape connectivity in Namibia

    29 October 2026
    Rate hikes threaten a household recovery built on cheaper credit - John Gellatly

    Rate hikes threaten a household recovery built on cheaper credit

    29 October 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Why the JSE is keeping its AI agents on a short leash - Alicia Greenwood

    Why the JSE is keeping its AI agents on a short leash

    30 October 2026
    Free Office, free Photoshop: AI is breaking Big Tech's business model

    Free Office, free Photoshop: AI is breaking Big Tech’s business model

    30 October 2026
    Crypto's biggest heist exposes the weak link in exchange security

    Crypto’s biggest heist exposes the weak link in exchange security

    30 October 2026
    How to protect your business from digital banking scams and fraud - Standard Bank

    How to protect your business from digital banking scams and fraud

    30 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter