Online grocery sales in South Africa are growing fast, but the reported figures do not show how much profit delivery itself makes. This is according to an analysis by Willem Kempen published by News24.
Shoprite reported Sixty60 sales of R25.5 billion in the 52 weeks to 28 June 2026. That was 34.5% more than the year before. Shoprite’s annual report calls its digital commerce platform profitable, but it gives no separate profit figure for Sixty60.
Kempen said selling groceries, running a shopping app and delivering orders are different activities, even when one app brings them together. “A scooter passing your gate tells you that someone has placed an order. It cannot tell you who made money from it,” he wrote.
The question came back after comments by former Shoprite chief executive Whitey Basson about Checkers’ Sixty60 service.
Other retailers have shared growth numbers too. Pick n Pay reported a second year in a row of online profit in the 52 weeks to 1 March 2026. It did not give a rand figure. Its online turnover then grew 35.4% in the 26 weeks to 30 August 2026, helped by adding clothing to its on-demand delivery app.
Woolworths reported on-demand delivery revenue growth of 19.6% in its year to June 2026. Kempen said neither growth rate shows how much profit the delivery operation keeps.
Naspers gave a clearer number for Mr D. It reported adjusted earnings before interest and tax of $4 million for the year to March 2026, on revenue of $138 million. Kempen said this measures operating profit, not the final profit after interest and tax.
He said the numbers cannot simply be ranked side by side. Supermarket sales include the groceries themselves. A platform’s fee income is different from the full value of the food ordered through it.
According to Kempen, the delivery fee does not have to cover every cost on its own. The margin on the groceries can help pay for picking, packing and transport. But apps, payment processing, customer support, refunds and promotions must also be paid for.
He said established supermarkets have an advantage. Shoprite uses its existing stores as local hubs for Sixty60, which brings stock closer to customers. Shorter trips and many nearby orders can let a rider finish more deliveries.
Kempen added that an online order is not always a new sale. If it replaces a purchase in the store, the retailer must weigh the extra delivery cost against keeping that shopper.
Restaurant platforms such as Mr D and Uber Eats earn fees from merchants and customers. Kempen said some restaurants charge more on Mr D than at the counter, so delivery fees alone can miss part of the total cost.
He said a profitable platform does not mean every restaurant or rider gains equally. Riders working as independent contractors must count costs such as fuel, vehicle hire and maintenance, as well as time spent waiting for orders.
Source: this article is based on reporting by News24. Image: News24. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.