JOHANNESBURG, Sept 12 (Askume) – As e-commerce grows in South Africa, last-mile delivery trucks and vans are becoming prime targets for hijacking gangs, driving up security costs for these companies, officials said on Thursday.
New international entrants such as U.S. e-commerce giant Amazon (AMZN.O) and fast fashion online retailers Shein and Temu have also strengthened their competitiveness to compete for a larger share of the online wallet.
Logistics trucks and parcel delivery vans transporting bulk goods “spend a lot of money on security,” Craig Pitchers, chief executive of privately held The Courier Guy, told an e-commerce conference in Johannesburg. There’s also the cost of hiring security personnel to protect these vehicles. He said it’s “eating into our profits.”
This does not include fuel costs, which have increased significantly since the pandemic.
These vehicles are targeted because they often contain valuables.
Diedrich Stopforth, commercial director of Skynet Worldwide Express, said around 20 to 25 vans and vans were hijacked every day.
Courier companies are now forced to use cash carriers to deliver high-value products, Stopforth said. But they are also increasingly being targeted, with vehicles regularly bombed and highway shootings taking place.
The pandemic has ultimately brought opportunities for e-commerce, with online shopping in South Africa growing rapidly and retailers and companies increasing investment in response.
South Africa’s online retail industry is expected to grow by 29% by 2023, reaching R71 billion (US$4 billion), representing 6% of total retail sales. A study by World Wide Works shows that this proportion will increase to 10% by 2026.
All of this has led to an increase in the number of delivery trucks, vans and motorcycles on the roads and attracted the attention of criminals.
Police have established and strengthened cash transport task forces and increased visibility on the roads to respond to these vehicle hijacking incidents.
(1 USD = 17.9111 Rand)
