“This great news for online shoppers,” says Justin Spratt, CEO of digital agency Quirk. “Scale is vital; these companies have been struggling to make money by delivering to our doors. This merger will mean better things for people buying online.”
Less (competition) is more
South Africa is a large country with a dispersed population, which drives up delivery costs. “There aren’t any online retailers with enough scale to give us cheap delivery costs,” explains Spratt. “This merger will see those costs decrease and these savings will be passed on to consumers.”
Spratt believes that shopping online will become prolific in South Africa within the next five years.
Not quite a merger of equals
“Takealot has been the bigger, better outfit,” says Spratt. “Kim Reid, the CEO, used to work for Naspers where he was highly regarded.
“They’ll probably stick with the name ‘Takealot’,” predicts Spratt. “Only one thing might complicate things and that’s the phenomenally successful Kalahari advertisement campaign that only recently concluded. But I suspect they’ll stick to ‘Takealot’.”
Listen to the Soundcloud clip for more detail.