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
      So, who exactly will buy Apple's R50 000 iPhone Duo

      Why Apple can’t tell you who its R50 000 iPhone is for

      11 September 2026
      South Africa is behind its neighbours on the plumbing of digital IDs

      South Africa is behind its neighbours on the plumbing of digital IDs

      11 September 2026
      South Africa to extradite US cyberfraud-gang suspects to US

      South Africa to extradite cyberfraud-gang suspects to US

      11 September 2026
      Newspaper group Caxton deploys AI editors

      Newspaper group Caxton deploys AI copy editors

      11 September 2026
      'There are no adults in the room': the AI safety exodus

      ‘There are no adults in the room’: the AI safety exodus

      11 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      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
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 2026
    • Company Hubs
      • 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
      • 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
      • Financial services
      • 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 » Takealot’s ingenious move

    Takealot’s ingenious move

    By Hilton Tarrant13 May 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    The first question nearly everyone asks when they learn about Takealot’s new pickup points is “Why?”. Most cannot fathom why the country’s largest online retailer is rolling out a network of physical collection outlets in urban areas across the country.

    The retailer has rapidly rolled out a number of pickup points across the country (including at its warehouse in Cape Town). Currently, 30 are live, with 15 across Gauteng and eight in the Cape metro. It sees the total growing to around 50 in the next year. The pickup points are for Takealot parcels as well as orders placed on its fashion site subsidiary Superbalist.

    Speaking at the opening of its flagship pickup point at the Big Bird complex on the N1 highway in Midrand (the petrol stations at New Road) last week, Takealot CEO Kim Reid made the point that the local market is not the same as the market in the US. “People are not always at home, they are not always at their businesses.”

    A network of physical pickup points helps Takealot overcome the limitations inherent in a delivery-only business

    This is its key selling point to customers: these pickup locations offer convenience. Reid says customers have peace of mind knowing their order is available and waiting, and they’re able to collect it when its convenient to them.

    Pickup points are open until late — generally 7pm during the week. The N1 Bridge pickup point at Big Bird is entirely focused on commuters: it is open from 6am to 8pm, although Reid says the retailer will start adjusting these times. He notes that Takealot has had a pickup point since “almost day one”: its warehouse in Cape Town.

    The retailer offers a multitude of delivery options, with standard delivery (including to pickup points) free for orders over R450. Expedited delivery to main centres is available at a fee of around R100, depending on the specifics.

    Low fee

    Smaller value orders (under R450) attract a delivery charge of R60, but for collection at pickup points, this charge is only R25. (Expect experimentation with various delivery pricing strategies soon.)

    This low fee may entice customers to order more often, and may also attract new customers who can’t or prefer not to accept deliveries to Takealot. The importance of these two factors should not be underestimated.

    But there are other compelling reasons for Takealot to be pursuing this strategy.

    First, the investment to roll out the pickups points has likely been modest as — crucially — Takealot (and subsidiary MrD Food) already has a physical footprint.

    Takealot CEO Kim Reid

    It uses these centres as hubs from which it then distributes parcels daily. For example, many parcels destined for delivery in Sandton likely arrive at the Bryanston hub (just off William Nicol Drive), before a fleet of mostly scooters ensure their eventual delivery through the day. So, parcels aren’t going anywhere different, they’re simply being held at the hub for collection. Leveraging these as walk-in pickup points therefore only required the installation of a more “professional” customer entrance.

    Second, a network of physical pickup points helps Takealot overcome the limitations inherent in a delivery-only business.

    Some customers don’t (yet) trust deliveries, while others simply may not be able to receive them. They may have a job that prevents them from being in a single location throughout the day. Sending parcels to a home address may not be possible. There might not be anyone at home during the day to receive a delivery. Or (in a more South African context), there might not be a way for a delivery to be made to a unit in an apartment or townhouse complex during the day.

    Pickup points help dramatically simplify the returns process for Takealot. Until now, this required customers to log a return and then wait for a courier to collect the return

    Traditional bricks-and-mortar retailers have long understood these limitations. Practically all local retailers who have launched aggressive online shopping plays in recent years have leveraged their store networks with a focus on “click and collect” orders. This has either been on their own or through a solution like Pargo, which enables a network of 2 000 pickup points across the country, including TFG Limited and Clicks stores. The locker model, increasingly popular at petrol stations, also helps bridge the gap between a dedicated pickup point and an existing retail footprint.

    Third, the pickup points help dramatically simplify the returns process for Takealot. Until now, this required customers to log a return and then wait for a courier to collect the return.

    This involved the same complicated dance as the delivery to ensure customers were available.

    Returns

    Broadly speaking, though, this required a business almost entirely focused on delivering parcels to customers to efficiently handle a reversal of this process. With the pickup points, customers can log a return and simply drop their parcel off. Returns can then first be collated at each hub and then sent back to the Cape Town warehouse.

    Finally, the pickup points are significantly more efficient for Takealot than the randomness and complexity of door-to-door delivery. This point was not made directly by Reid at the launch but is surely a contributor to why these are being rolled out so rapidly.

    Takealot sends tens of thousands of parcels to these hubs a day for onward delivery. This is the portion of the delivery process it has the most control over (effectively total control), and the part it likely knows the most about.

    These pickup points are crucial to getting more parcels delivered on the same day over time, and Takealot knows this. It is not economical (or profitable) to send a parcel via a courier from either the Cape Town or Johannesburg warehouse direct to a customer on the same day. But when the cost of getting a parcel closer to the customer (to their nearest hub) is spread over the total number of items being sent to that hub at that point in time, the numbers start making sense.

    It isn’t clear how often “bulk” deliveries are being made to these hubs per day (presumably at least morning, noon and night), but making this more efficient is surely something Takealot is hard at work on. Reid says the plan, over time, is to get deliveries to the pickup points down to the same day. This will make the retailer even more attractive and should further stimulate usage.

    Reid notes that between 10% and 15% of orders in the Cape Town area are already collections from the main warehouse (in the out-of-the-way Montague Gardens). He says the business expects to see a similar percentage of collections across the network of pickup points.

    One can’t help but get the sense that Reid is being too conservative (perhaps deliberately so, or at least publicly so). It wouldn’t be a stretch to see this number at 20-25% of total orders with a network of 50 pickup points in place, especially since Takealot knows precisely where these would be best-suited (given what it knows about its customers and their behaviour).

    • This article was originally published on Moneyweb and is used here with permission
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Kim Reid Takealot top
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleVodacom grows SA data revenue by just 4%
    Next Article Vodacom to acquire IoT.nxt

    Related Posts

    Only one in 10 township businesses sells online

    Only one in 10 township businesses sells online

    3 September 2026
    Report shows big shifts in online spending in South Africa

    Report shows big shifts in online spending in South Africa

    2 September 2026
    The rands-and-cents case for electric trucks - William Kelly Watts & Wheels with Wills

    The rands-and-cents case for electric trucks

    20 July 2026
    Company News
    Why businesses are moving n8n onto their own servers - Domains.co.za

    Why businesses are moving n8n onto their own servers

    11 September 2026
    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    11 September 2026
    Can an online school produce a scientist? CambriLearn has an independent answer

    Can an online school produce a scientist? CambriLearn has an independent answer

    9 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

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

    Latest Posts
    So, who exactly will buy Apple's R50 000 iPhone Duo

    Why Apple can’t tell you who its R50 000 iPhone is for

    11 September 2026
    South Africa is behind its neighbours on the plumbing of digital IDs

    South Africa is behind its neighbours on the plumbing of digital IDs

    11 September 2026
    South Africa to extradite US cyberfraud-gang suspects to US

    South Africa to extradite cyberfraud-gang suspects to US

    11 September 2026
    Newspaper group Caxton deploys AI editors

    Newspaper group Caxton deploys AI copy editors

    11 September 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}