Dark store disruptors are the future of on-demand delivery

By Timothy Kiluba, General Manager of Yassir South Africa

Even in difficult economic conditions marked by soaring costs of living and rising interest rates, South Africa’s on-demand grocery delivery market has continued its meteoric boom, driven by growing consumer emphasis on convenience and time-savings. 

The fast pace of modern lifestyles, particularly for residents in urban areas, has given households a growing aversion to queues and crowds, and a growing appreciation for the benefits of safely purchasing items online from the comfort of our couches or desks. 

So, in an environment where the South African Reserve Bank (SARB) has slashed its local economic growth expectations to a meagre 0.3% for 2023, by contrast, Statista has predicted that the grocery delivery market will achieve an average annual growth rate of 11.18% between 2023 and 2027. 

Given the growing squeeze on consumer wallets, however, this phenomenal success is likely to be driven by dark store disruptors which can offer superior cost savings and convenience. Arguably, this has been one of the hallmarks of Yassir’s success to date, winning over eight million users across six countries to the app since its launch in 2017. 

To explain, dark stores are essentially sophisticated warehouses which are not open to the general public, housing thousands of products for selection by online shoppers which are delivered straight to their door. Unlike traditional retailers, this means that dark stores are able to avoid additional overhead costs in the form of utilities and staffing – a cost-saving which Yassir Express is able to pass on to shoppers in the form of lower prices and product sales. 

Considering that the price of food and non-alcoholic beverages increased some 12.4% year-on-year in December, these savings will become increasingly significant to consumers seeking to alleviate pressure from budgets, making shopping more affordable

Likewise, as busy parents look to navigate the complexities of busy work schedules, longer commute times, loadshedding and various family demands, the dark store model offers added convenience in the form of longer opening hours and faster delivery times. 

For example, unrestricted by traditional retail operating hours and shopping queues, Yassir Express’ dark stores remain open from 6 am to 10 pm. Additionally, our model means that we are able to draw on the benefits of dedicated workers and cutting-edge technology to assemble shopping baskets in record time, with targeted delivery times of just under 30 minutes. Furthermore, having a dedicated fleet of drivers assigned to each dark store means that shopping baskets are not restricted in terms of the number of items for an enhanced customer experience.

It is for this reason that the local launch of Yassir Express has been so successful to date, delivering thousands of items to households across Gauteng within the past two months alone. 

Building on this foundation, we plan to open even more dark stores across Gauteng over the coming months while investing in further app development to better support the South African market and ensure seamless shopping experiences. Additionally, our goal is to roll-out nationwide with rapid expansion.

The South African on-demand grocery delivery market is definitely one of the country’s most exciting growth segments, especially as dark store disruptors seek to challenge traditional retail goliaths – this will certainly be a space to watch.