As e-commerce continues to grow in South Africa, last-mile delivery trucks and vans are increasingly becoming prime targets of hijacking syndicates, driving up security costs for these companies, executives said on Thursday.
New international entrants to the market like US e-commerce giant Amazon.com and fast-fashion online retailers Shein and Temu have also intensified the competition for a greater share of online wallets.
Logistics trucks transporting goods in bulk and parcel delivery vans are “spending an absolute fortune on security”, including costs for hiring security to escorts these vehicles on the road, Craig Pitchers, CEO of privately-owned The Courier Guy said at an e-commerce conference in Johannesburg, adding that these “kill our margins”.
This is in addition to the cost of fuel, which has soared since the pandemic.
These vehicles are targets because they often carry valuable goods.
There are about 20-25 hijackings a day of delivery trucks and vans, Diederick Stopforth, commercial executive at SkyNet Worldwide Express added.
Delivery companies are now forced to move high value products in cash-in-transit vehicles, Stopforth said. But even those have increasingly become targets, with regular bombings of these vehicles and shoot-outs on the highway.
South Africa has seen a sharp rise in online shopping after the pandemic created an opportunity for e-commerce to finally take hold, with retailers and businesses doubling down on investments in response.
South Africa’s online retail sector grew 29% to R71bn in 2023, commanding a 6% share of total retail sales. This share is seen growing to 10% by 2026, a study by World Wide Worx showed.
All of this has brought more delivery trucks, vans and motorbikes on the road, with criminals taking note.
Police have established and beefed up cash-in-transit task teams as well as increasing visibility on the roads to deal with hijacking of these vehicles.