eCommerce site buys Mr Delivery arm to offer same-day deliveries

TAKEALOT, a South African online retail store and Mr Delivery Express, a subsidiary company of Mr Delivery Holdings are teaming up to give “speedier and more efficient service through the eventual introduction of same-day delivery for any item held in stock.” Simply put, same-day delivery for online shoppers.

A 40% stake in Mr Delivery Express has been cemented by TAKEALOT and is said to be “a first of its kind in the South African e-commerce industry.”

“Mr Delivery has a national footprint and partnering with TAKEALOT was a natural evolution given the nature of their business. With the logistical backbone that Mr Delivery Express offers, TAKEALOT customers can expect speedier delivery and a wider service offering. We are indeed proud to be a major partner of this pioneering venture.”, as said by new owners of Mr Delivery, David Chait and Alon Rom.

A compelling shopping option

The partnership between the two companies aims to turn the online shopping experience into a “compelling option” for customers. The aim is to have a customer’s chosen item delivered to them in hours, not days.

Mike Abel, CE of M&C Saatchi was one of the key players in the deal, introducing Kim Reid to Alon Rom and David Chait from Mr Delivery.

TAKEALOT CEO Kim Reid says of the deal, “The decision to buy into Mr Delivery Express to create opportunities to differentiate our offering by the speed of delivery was an easy one. Online retail is very competitive and this partnership sets a new standard for the industry and gives TAKEALOT a competitive edge in terms of order fulfilment. This partnership further supports the growth of our business model, which is to be the leading South African online retailer with a core focus on customer service, choice of product and competitive pricing.”

TAKEALOT is a young, savvy eCommerce site which got the attention of big hedge funds such as Tiger Global Investment and is headed by Kim Reid, former Naspers executive, MIH CEO and MWEB CEO.

Same-day service

The turnaround aspect of the new partnership will hopefully work as such: Users who order products (which are in stock) in their region before 1pm will get the items on the same day before 7pm. TAKEALOT users will also be called to arrange an appropriate delivery time.

For now, the same-day delivery option is limited to users in the Western Cape only and is currently in operation. Over the coming months, it will be rolled out to Johannesburg customers, once initial testing has completed. This is a lofty promise for any e-commerce vendor, hopefully the partnership will produce an interesting result and an enhanced (read: less irritating) experience for the end-user.