The dark side of feeding SA’s growing appetite for e-commerce

Business is booming in the courier delivery sector, but drivers say they are struggling to stay afloat, given the high costs associated with the industry. Picture: File

Business is booming in the courier delivery sector, but drivers say they are struggling to stay afloat, given the high costs associated with the industry. Picture: File

Published Jan 29, 2023

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Gershwin Wanneburg

The bike courier market is booming as more Capetonians order in, but the men and women who deliver everything from food to emergency party ice to your door, often face a harsh reality.

Lovemore Mukono, a courier who works in the Eersteriver area for a popular food delivery service, said his weekly earnings amounted to sweets money for his children.

His partner, who is a domestic worker, takes care of the big household expenses, while he buys “small stuff to eat”. That includes chicken gizzards, hearts and feet.

In a good week, Mukono earns around R1 300, but is left with about R400 after paying R600 for renting his scooter, and R300 for petrol. In a slow week, he can earn just R500.

In addition, Mukono faces the risk that his scooter will be confiscated if he cannot pay the weekly rental free. He chose the industry after losing his job as a machine operator at a furniture company.

“If I get another job, I can leave this. It’s better to do something than just sit at home. Other people end up poor or they end up just like street kids,” Mukono said. “It’s just a way to try to survive.”

Fellow bike courier, Prosper Muguti works in the same neighbourhood as Mukono and reports more or less the same experience.

In a busy week, he earns roughly R2 000 and around R1 200 when things are quiet. He said that more drivers are entering the market.

“Business is so-so. Sometimes it’s busy. Sometimes it’s not … It’s not easy,” he said.

These drivers’ meagre earnings are in sharp contrast to the rest of the multi-billion-rand industry, including the likes of veteran Mr Delivery, Uber Eats, Takealot, Checkers Liquor, and newcomer Skedadel, which have all gone the mobile app route.

David Beer, owner of Scoot Doctor that sells and rents mainly to corporate clients, said bike sales had increased dramatically in recent years.

“The 125 cc (scooter) market is the biggest market. Sales have probably tripled month-on-month,” Beer said.

Fumani Mashau, owner of Tipfusheni Projects, repairs and rents scooters. He launched the service to keep up with the demands of his own vehicles. He said it was hard to measure growth in the bike courier industry because drivers and owners come and go “but it is sustainable”.

Mashau is a member of the Delivery Motorbikes Association, an informal group of about 104 owners started around 2016. They vet drivers, sell vehicle parts among each other and share knowledge about the business.

He said vetting drivers involved determining who the “problematic” and non-paying ones are.

He said earnings could not be guaranteed.

“The delivery space, it’s like the taxi business. It’s just about how hard you work. Parcels are there to deliver all the time. People order food all the time … some people make bout R2 000 to R3 000 every week. If they’re renting a bike, most bikes are rented between R550 and R750. There are many factors that affect people, based on their dedication to the business,” he said.

Regarding confiscation of bikes, he said: “Like any other contractual agreement, if you’re supposed to be paying on a weekly basis, and you can’t, you have a choice to either surrender the motorcycle or I make arrangements to collect the motorcycle from you, or to confiscate it.”

The Covid-19 pandemic forced more South Africans to do their shopping online. E-commerce spending, excluding flights and accommodation, increased 30% year-on-year during the first half of 2020 compared to 2019, according to FNB.

The e-commerce industry is expected to grow by 150% to R225bn by 2025. FNB said there were about 5 000 businesses online in South Africa with a turnover of R100 000 or more.

The 2022 Annual Cravings Report released by Uber Eats also revealed a great deal about South Africa’s appetite for apps.

Cape Town, also the app’s vegan capital, topped the list of late-night cravings, with the most orders between 12am and 4am. Ice remained a popular grocery item, with over 500 000 bags of ice sold. The most expensive order in 2022 was nearly R13 000 for more than 30 curries from the same restaurant.

Weekend Argus