South Africa's TFG buys online shopping and delivery provider Quench

China Cultural Tourism and Agriculture

02/12/2021 15:03

JOHANNESBURG, Dec 2 (Reuters) - South Africa's TFG  TFGJ.J 
is buying on-demand online shopping platform and last mile
delivery provider Quench, as part of a push to grow its
e-commerce business, the fashion and homeware retailer said on
Thursday. 
    After years spent lagging much of the world in terms of
e-commerce, South African retailers and delivery startups have
generated record online sales as consumers avoid shops because
of the COVID-19 pandemic.
    However, the boom had strained the capacity of even the
largest retailers, forcing them to invest and make e-commerce
acquisitions to improve wait times and services.
    As they vye to become e-commerce leaders, retailers have
complemented their scheduled delivery and click-and-collect
services with on-demand delivery.
    "With this acquisition we gain access to fast, reliable
delivery across South Africa, whilst achieving superior delivery
unit economics," Claude Hannan, Co-Head of TFGLabs, a newly
established tech hub, said. 
    Quench is one of the liquor delivery services that pivoted
into on-demand groceries and other essential products, such as
medicine at the height of COVID-19-led lockdowns when alcohol
was banned in South Africa.
    It operates as a marketplace where shoppers can buy products
from different suppliers.

 (Reporting by Nqobile Dludla; editing by Barbara Lewis)
 ((nqobile.dludla@thomsonreuters.com; +27103461066;))