It’s a good time to work in e-commerce in South Africa. It’s an even better time to be Pargo, the click-and-collect delivery service that has seen an uptake in business since its earlier days on the local landscape.
Speaking in an interview with Reuters, company co-founder and CEO Lars Veul explained how the service intends to go continent-wide as a result of its South African popularity. Pargo has more than 4,000 pick-up points in the country, many in less formal stores like spaza shops.
Pargo goes international
South Africa was just the start, according to Veul. “We’re looking at an expansion strategy to move into multiple markets. We are operational with a pilot in Egypt as a second country, but we are quite seriously looking at, in the future, building a network across Africa,” he said.
This network would first take in countries on the continent where online shopping is already popular but developing markets are also under consideration.
Pargo’s Egypt trial has some 150 pickup points active in that country. Pargo had a unique challenge to overcome in the North African country, too. “Additionally, we have had to create a payment solution as 80% of payments in the Egyptian market happen with cash,” said Veul.
Considering the company’s local performance — it has partnered with local retailers and formed part of Amazon’s South African debut — it’s not a stretch to believe that Pargo can make a go of it in other African countries.
