South African click-and-collect company Pargo explores expansion across the African continent
South African click-and-collect company Pargo is actively exploring opportunities to expand its services across the African continent, according to CEO Lars Veul in a recent interview. Driven by the rapid growth of e-commerce in Africa, Pargo aims to meet the increasing demand for convenient delivery and pickup options in markets beyond South Africa. Veul emphasized the company’s belief that Africa’s expanding digital economy offers significant potential for e-commerce logistics solutions, as many consumers seek flexible delivery alternatives due to infrastructural challenges and limited last-mile options in certain regions. By broadening its presence, Pargo seeks to provide reliable and accessible delivery solutions, ultimately supporting the continued growth of e-commerce across Africa.
“We’re looking at an expansion strategy to move into multiple markets. We are operational with a pilot in Egypt as a second country. Still, we are quite seriously looking at, in the future, building a network across Africa,” aid Lars Veul, CEO and co-founder of Pargo, in an interview with Reuters.
“We don’t know exactly yet. So, it’s more about the countries where e-commerce is booming or expected to boom.” He stated.
Pargo operates over 4,000 pick-up points throughout South Africa, strategically located in a variety of retail environments. These include major retail outlets and small neighborhood “spaza” shops in local communities. By leveraging this extensive network, Pargo offers accessible collection points that cater to diverse populations, making it easier for customers to pick up orders from convenient, familiar locations. This approach improves last-mile delivery options and strengthens Pargo’s reach within underserved areas, supporting its mission to enhance e-commerce accessibility across South Africa.
Veul stated that the options would span the leading economies in Africa. He noted that the expansion will also be guided by following its existing clients into other countries where they operate outside South Africa. In Egypt, Pargo has been testing the market since last year with 150 pickup points, assessing whether
Pargo has established partnerships with prominent telecom providers, banks, and retail chains, including global e-commerce leader Amazon, which began operations in South Africa in May this year. Amazon customers can conveniently collect orders at Pargo’s designated pick-up points nationwide through this collaboration.
The click-and-collect model offers several advantages for both consumers and companies. Shoppers benefit by sidestepping delivery fees and bypassing the frustration of waiting at home for packages to arrive. Meanwhile, businesses can reduce the often high costs associated with last-mile delivery logistics, as the centralized pick-up points streamline distribution. By offering an accessible, cost-effective collection option, Pargo’s model addresses logistical challenges while enhancing the overall e-commerce experience for customers and companies alike.
