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Shoprite Acquires Pingo to Strengthen Checkers Sixty60 Delivery Network

Published October 08, 2024
11 months ago


In a strategic move to bolster its online grocery delivery service, retail giant Shoprite has officially received the green light from South Africa's Competition Commission to acquire Pingo Delivery. This acquisition is a pivotal step for the powerhouse behind the popular Checkers Sixty60 service, as the company continues to push the boundaries of efficiency and innovation in the South African e-commerce landscape.


Checkers Sixty60, Shoprite's foray into online grocery delivery, has established itself as a leader in the industry. Launched late in 2019, it has since become the nation's premier grocery application, amassing an impressive 4.5 million downloads to date. The service, which is currently operational in over 500 locations, has not only catalyzed convenience for customers but has also been a significant source of employment, creating upwards of 9,000 jobs. What is more striking is the program's rapid growth; since the first half of 2021, Sixty60 has witnessed a more than tenfold surge in its sales figures.


When analyzing the success behind Checkers Sixty60, it becomes glaringly clear that efficient logistics are the linchpin. The service's standout feature, promising deliveries within 60 minutes of order placement, relies on a robust, responsive logistics framework – a role that has been masterfully filled by Pingo.


Born of a joint venture between the Shoprite Group and RTT, a logistics group from Gauteng, Pingo was incepted in May 2022 as a dynamic, last-mile delivery service. Specializing in swift, on-demand delivery solutions, Pingo caters primarily to online shopping platforms, ensuring that customer orders are swiftly transported from the store to the customer's doorstep.


While Pingo's responsibilities have broadened to include a variety of business partners, its mainstay operation remains with Checkers Sixty60, where it continues to excel.


Shoprite CEO Pieter Engelbrecht cited the rapid expansion of their operations and the necessity for seamless value chain delivery as central reasons behind this acquisition. In conversation with News24, Engelbrecht pointed out the limitations of relying on third-party vendors, especially as Shoprite strides ahead with ambitious growth plans. Owning Pingo aligns with Shoprite's strategy to not only scale Checkers Sixty60 but also to replicate this service model for the benefit of spaza shop owners through its wholesale segment, Cash & Carry.


The approval by the Competition Commission comes without conditions, indicating that the deal is not expected to hamper competition within any market sector. This is good news for consumers, as it suggests the acquisition is poised to enhance, rather than constrain, the marketplace dynamics.


With this new consolidation of logistics capabilities, Shoprite is set to revolutionize the South African retail space, offering even faster, more reliable, and innovative delivery solutions for its customers.



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