2023 Township CX Insights: Challenging the Giants One Delivery at a Time

In recent years, there has been a massive rise in the use of delivery services. With the private sector delivering everything from food to pharmaceuticals, it has created a massive demand for delivery services across South Africa. However, big names such as UberEats and Checkers Sixty60 are - in some instances - not equipped to provide services to townships.

This has opened up opportunities for the entrepreneurs in the Kasi Economy to challenge delivery giants by creating kasi-centric delivery services that cater to the township ecosystem's unique needs.

Platforms like Zulzi and Yebo Fresh are currently competing with industry giants by providing faster, more efficient service at better prices. This has led to the rise of success in delivery services, with more than 40% of respondents stating they used some kind of delivery service.

These delivery platforms have also opened up the kasi community to a cashless culture. Jessica Boonstra, from Yebo Fresh, says, “The transition from cash-based to cashless transactions within South Africa’s informal economy, particularly within townships, is accelerating as businesses and consumers alike recognise the benefits and need for greater financial inclusion”.

Going cashless not only opens the doors to financial inclusion but also increases the levels of safety and efficiency when it comes to money. Platforms such as Shop2Shop, Kazang, and Flash are now being more openly utilised by more than 65% of Yebo Fresh’s B2B customers.

Overall, these changes in the township ecosystem signify progression in terms of consumer behaviour and business practices within the township economy. The readiness of businesses to accept the shift to cashless transactions and embrace new business opportunities can play a significant role in financial inclusion across South Africa.

Learn more about consumer insights and the township economy by downloading the full 2023 Township CX Report.