South Africa is the 41st largest market
for e-commerce globally with revenue of
US$5 billion in 2021. Global e-commerce
sales are expected to increase over the
next few years with South Africa’s yearly
growth rate of 8% between 2021 and
2025 expected to outperform the global
average of 6%.
Aiming to capitalise on the growing
e-commerce trend, City Logistics, the
largest privately owned logistics provider
in South Africa, and private equi-
ty management company Clearwater
Capital, have partnered to acquire 100%
of franchised courier company, Fastway
Couriers South Africa.
The acquisition has created one of
the largest turnkey logistics providers
to the fashion, retail and e-commerce
sectors, says Ryan Gaines, City Logistics’
CEO. “The combined businesses of City
Logistics and Fastway offer one of the
most affordable delivery options in
South Africa for SMEs and corporates,”
he comments.
“Logistics companies are increasing
their workforces, technology, and fleets
to keep up with increasing e-commerce
demand,” says Keval Mehta, Clearwater
Capital’s Executive Director.
OEMs (original equipment manufac-
turers) with a strong product offering
could be likely beneficiaries of this
market activity. AutoTrader figures show
a 65% increase in search activity for
used LCVs (light commercial vehicles)
when comparing January-July 2020
data to January-July 2022. Of those
searches, the most enquired models
are the Toyota Hilux, Ford Ranger,
Nissan NP200, Isuzu KB and Volkswagen
Amarok. Meanwhile, sales of new
medium and heavy trucks increased by
33% and 18.3% respectively in July 2022
compared to the corresponding month
last year, according to Naamsa, the
Automotive Business Council.
Similar increases in the popularity of
motorcycles have been recorded with
searches for used motorcycles showing
an increase of over 69% when compar-
ing January-July 2020 to January-July
2022 data. The new motorcycle market
grew by 26.7% in 2021 when compared
to 2020, according to the Association of
Motorcycle Importers and Distributors
(AMID).
“Fastway’s unique regional franchise
model provides an opportunity for
micro-entrepreneurs to benefit from the
growth opportunity in the e-commerce
sector,” says Mehta.
The Fastway acquisition allows City
Logistics to provide its existing and
future customers a valuable small parcel
solution. The two companies count
Mr Price group, Home Choice and The
Foschini Group among the list of shared
customers.
“This transaction will further assist
the growth opportunity that lies with
global e-commerce retailers like Alibaba
and Shein, where imports are brought
to one central place for final distribution
to end customers. This is a service that
Fastway is likely to develop further in the
future,” says Gaines. BFA
InDUsTRY neWs
A mere 24 hours after Volvo Car South Africa’s second
all-electric variant – the XC40 P6 Recharge – went on
sale locally, the entire initial allocation was sold out.
The order books for the XC40 P6 Recharge officially
opened early on Tuesday 26 July and every one of the
25 units was snapped up by the following morning.
The highly anticipated single-motor version of the
electric XC40 was available exclusively online through
Volvo’s website from a starting price of R1 075 000.
The quick-thinking buyers who recognised the XC40
P6 Recharge’s compelling value proposition and scooped
up the initial units will enjoy strong peak outputs
(170 kW and 330 Nm), a competitive single-charge range
(up to 423 km), a generous array of standard equip-
ment and Volvo’s signature suite of world-class safety
features. Deliveries will take place later this year. BFA
Volvo XC40 P6 Recharge sells out in 24 hours
BUSINESS FLEET AFRICA | September 2022
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Could the growth in e-commerce
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