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Takealot expands Mr D platform to include pet supplies,
toys
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CEO highlights partnerships with retail brands lacking
logistics
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Mr D aims for 50-50 food and non-food category split
By Nqobile Dludla
JOHANNESBURG, July 18 (Reuters) - South African
e-commerce company Takealot Group is ramping up on-demand
delivery by repurposing its Mr D takeaway food platform to
handle pet supplies, toys and other high-frequency purchase
items in a bid to fend off growing competition.
Mr D, which before the COVID-19 pandemic focused on doorstep
food delivery, has been repositioning itself as a broader
convenience marketplace, a strategy born out of desperation five
years ago when restaurant operations were restricted.
As competition intensifies in the e-commerce sector of
Africa's most developed economy - with the notable arrival of
Amazon ( AMZN ) last year - Mr D is leveraging the shift to
attract more customers and expand its market share.
Takealot Group, which is owned by technology investment
group Naspers, is betting big on Mr D to lead its next
phase of growth as consumers demand more immediacy and
convenience, its chief executive said.
In addition to Amazon ( AMZN ), it is going head-to-head against
other international rivals like Uber Eats and local
players Shoprite, Checkers Sixty60, and Pick n Pay
ASAP!
"Pets is one big category we're going to expand quite
aggressively on. And it's not just pets. It's speciality pet
food delivered on demand," Frederik Zietsman, Takealot Group
CEO, told Reuters in an interview.
Mr D also recently launched a partnership with Toy Kingdom,
activating 24 stores nationally for on-demand delivery.
Zietsman said the company's strategy is to work with
well-known retail brands that lack the logistics and digital
infrastructure to offer their own rapid delivery service.
"We've got a clear vision of what that will be in terms of
what categories come next," he added. "We look at, for example,
is there a play in DIY? Is there a play in pharmacy? Is there a
play in sports or baby? Like, what are those things that you
truly appreciate on demand?"
Food still forms a major part of Mr D's product categories,
but a bulk of that 70% share is composed of groceries delivered
through a partnership with retailer Pick n Pay.
The strategy is to have a 50-50 split between food and other
non-food categories in the next five years, Zietsman said.
($1 = 17.6773 rand)