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Courier Activities in South Africa 2017

  • May 2017
  • 113 pages
  • Who Owns Whom
Report ID: 3343850


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Courier Activities: The tough macro-economic environment has affected the growth of the courier, express and parcel (CEP) sector over the past few years. Estimated to be worth R20bn per annum, this industry delivers items from all sectors of the South African economy. Industry players range from multinational companies offering global services to single individuals with a bakkie or scooter. In this sector 74 companies are registered as unreserved postal services (UPS) operators.

A Changing Environment: The major changes driving the CEP industry include the shift from a Business-to-Business (B2B) market to a Business-to-Customer (B2C) market where customers are exercising more control over how, when and where their parcels are delivered. This is due to the growth in e-commerce, customer-centric disruptive start-ups and the introduction of automation and alternative high-tech delivery models. In order to be competitive, courier services need to be supported by a nationwide, if not a global network. Mergers and acquisitions are increasing as companies seek to attract volumes and extend networks. Smaller players are being taken over by the larger role players as they do not have the network to provide a cost-effective service to both high-volume metropolitan centres and low-volume rural areas.

Report Coverage: The Courier Activities report focuses on current conditions, merger and acquisition activity as well as factors influencing the success of the sector. Most of the major courier companies in South Africa are subsidiaries of international companies and include Aramex (Aramex South Africa, PostNet), DHL (DHL Express), FedEx (FedEx Express South Africa), DSV Group (DSV South Africa) and UPS (UPS South Africa). Profiles for these five players are available in this detailed report. Also included are profiles for 18 other companies including Isicabucabu Franchising (Pty) Ltd, which trades as Fastway Couriers South Africa and Takealot.com, which employs approximately 1,500 people in its Takealot and Mr Delivery divisions.

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