A new start-up, Pargo, is targeting the e-commerce logistics market, opening up parcel collection points inside retail outlets around the country.

Launched late last year in the Western Cape, the business is now expanding nationwide.

It comes as companies like Makro (with Sasol) and UTi Distribution (with Engen) begin rolling out e-commerce lockers at selected locations.

Pargo’s founders Lars Veul and Derk Hoekert both have backgrounds in e-commerce and logistics and felt there was a better way for dealing with the logistical challenges of parcel delivery.

“Optimal parcel delivery is about convenience, speed and reliability, yet South African businesses and their customers frequently face late or missed deliveries,” says Veul.

“Disruptions at the Post Office have further complicated matters.”

Targeted at both online and offline retailers, Pargo has more than 100 partner outlets in South Africa’s major urban centres. Sites include Freshstop at Caltex and Vee’s Video. Most pick-up points are open 24 hours a day, the company says.

It offers a parcel returns solution, too.

“South Africa lacks a viable returns solution, yet this is an essential component for online businesses in particular,” says Hoekert. Consumers simply drop off a parcel they wish to return at a Pargo location.

Unlike the Makro and UTi solutions, Pargo does not use secure lockers. Rather, parcels are stored in a secure area inside the store. “Customers collect the parcels at the counter and the staff of the store hand over the parcels,” Veul explains.

The cost depends on different factors, including size, weight and delivery area.