South Africa’s Last-Mile Delivery Sector Struggles with Rising Hijacking Threats
As South Africa’s e-commerce sector flourishes, with online retail growing by 29% to 71 billion rand ($4 billion) in 2023, the last-mile delivery sector is facing escalating security challenges. Delivery trucks and vans, increasingly targeted by hijacking syndicates, are driving up security costs and squeezing profit margins for companies in this space.
Craig Pitchers, CEO of The Courier Guy, highlighted at an e-commerce conference in Johannesburg that security expenses, including hiring escorts for delivery vehicles, are becoming prohibitively high. This, combined with soaring fuel costs, is putting significant pressure on profit margins.
The surge in hijackings, estimated at 20-25 incidents daily, is forcing companies to transport high-value goods using cash-in-transit vehicles. However, even these vehicles are not immune to attacks, with reports of bombings and shoot-outs becoming more frequent, according to Diederick Stopforth, Commercial Executive at SkyNet Worldwide Express.
The entry of international e-commerce giants like Amazon, Shein, and Temu has intensified competition, further increasing the stakes for local delivery services. As the online retail share of total sales is projected to grow from 6% to 10% by 2026, the rise in delivery vehicles on the road has attracted the attention of criminals.
In response, police have strengthened cash-in-transit task teams and increased road visibility to combat these hijackings. Despite these efforts, the delivery sector remains under significant strain as it grapples with both rising security threats and operational costs.