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OneCart ramps up expansion plans after Massmart acquisition

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 22 Jun 2022
Lynton Peters, co-founder and CEO of OneCart.
Lynton Peters, co-founder and CEO of OneCart.

On-demand multi-retailer online marketplace OneCart has experienced exponential growth since it was acquired by retail giant Massmart, with its gross merchandise value increasing 200%.

The Gauteng-headquartered app-based grocery concierge was established by partners Lynton Peters and Ariel Navarro. It enables consumers to shop from multiple regional and national retailers, add the products to one basket, and have the order delivered on the same day.

OneCart has partnerships with Woolworths Food, Pick n Pay Food, Dis-Chem and Clicks, among other retailers.

In October, Makro and Game owner Massmartannounced it had reached an agreement to acquire 87.5% of OneCart.

The purchase sought to expand Massmart’s ability to serve customers more effectively by providing them with access to many product categories via a single shopping interface.

According to Massmart, theacquisition has enabled it to add its retailers – 28 Game and 12 Makro stores – to the platform, which now allows customers to shop over 10 000 products across multiple categories.

A total of 12 retailers are currently listed on the OneCart platform and the company says it is looking to expand its retailer ecosystem and increase the available product assortment.

“Since the acquisition, OneCart has increased driver headcount, improved internal efficiencies and added Massmart support services, which include payroll, finance, legal and IT security support,” says Peters, who is also CEO of OneCart.

“By the end of 2022, OneCart plans to double the number of Massmart stores available on the app. This expansion includes adding the Makro Crown Mines, Carnival and Wonderboom stores to the app this month, while selected Builders Warehouse stores will be added during July.”

According to the company, its main differentiator from the online retail shopping services offered in SA is that it has professional shoppers who do the shopping as per the orders. Also, a calculated concierge fee is charged per order, unlike the flat delivery rate charge per cart by retailers.

SA’s e-commerce continues to grow rapidly, since the onset of the pandemic, contributing up to 4% participation in overall retail sales, says Massmart.

Peters notes OneCart’s vision is to grow the diverse and competitive retail composition of OneCart and ensure the platform represents every retailer within a 10km radius of all customers.

“OneCart’s business model is becoming increasingly relevant for both retailers and consumers as convenience and time become new currencies. As retailers seek new growth opportunities and access to new customers, a fast, low-cost online presence is invaluable,” he adds.

In October, Massmart introduced new mobile apps for Makro and Builders Warehouse, as part of a mobile-first strategy inspired by majority shareholder, global retail giant Walmart.

The new mini apps can be accessed via Vodacom’s VodaPay Super App, which provides an ecosystem of third-party services that allow consumers to do everything from paying bills, to sending money and ordering takeaways, or making grocery purchases.

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