Logistics technology start-ups are on the rise in Africa, providing solutions for the continent’s e-commerce market. The market has been largely untapped until recently, but the increased adoption of smartphones and digital payment methods has opened up the opportunity for growth.
According to a report by Disrupt Africa, the number of logistics start-ups in Africa has increased by 77% since 2017. The report also revealed that South Africa is leading the way, accounting for 31% of the logistics start-ups on the continent.
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Pargo is one of these start-ups, offering smart logistics solutions for last-mile delivery. The company has partnered with various retailers, including Woolworths and Clicks, to provide a range of delivery options to consumers.
Shaunei Gerber, product marketing manager at Pargo, believes that the success of any retailer-delivery provider relationship depends on choosing the right delivery partner. She stresses the importance of choosing a partner that is committed to customer convenience, understands the market, and has a strong track record in last-mile delivery.
Gerber also emphasises the importance of technology in the delivery process. With the right technology, courier partners and communication tracking strategy, businesses will be set up for success when it comes to the final mile.
“With the right technology, courier partners and communication tracking strategy, your business will be set up for success when it comes to the final mile,” Gerber says.
While the growth of logistics start-ups in Africa is encouraging, there are still challenges to overcome. These include inadequate infrastructure, unreliable transportation, and the lack of regulatory frameworks.
However, Gerber is optimistic about the future of logistics technology in Africa. “We’re seeing more and more start-ups emerge in this space, and we’re excited to see how the industry will continue to evolve,” she says.
The growth of logistics technology start-ups in Africa is indicative of the continent’s potential for economic growth, experts believe. With more innovative solutions for last-mile delivery, businesses can expand their reach and provide better customer experiences.
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