Who Owns Whom

Courier Activities 2017

Liz Kneale | South Africa | 29 May 2017

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R 1 900.00(ZAR) estimated $ 120.93 (USD)*

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Report Coverage

The Courier Activities report focuses on current conditions, merger and acquisition activity as well as factors influencing the success of the sector. Most of the major courier companies in South Africa are subsidiaries of international companies and include Aramex (Aramex South Africa, PostNet), DHL (DHL Express), FedEx (FedEx Express South Africa), DSV Group (DSV South Africa) and UPS (UPS South Africa). Profiles for these five players are available in this detailed report. Also included are profiles for 18 other companies including Isicabucabu Franchising (Pty) Ltd, which trades as Fastway Couriers South Africa and Takealot.com, which employs approximately 1,500 people in its Takealot and Mr Delivery divisions.

Courier Activities

The tough macro-economic environment has affected the growth of the courier, express and parcel (CEP) sector over the past few years. Estimated to be worth R20bn per annum, this industry delivers items from all sectors of the South African economy. Industry players range from multinational companies offering global services to single individuals with a bakkie or scooter. In this sector 74 companies are registered as unreserved postal services (UPS) operators.

A Changing Environment

The major changes driving the CEP industry include the shift from a Business-to-Business (B2B) market to a Business-to-Customer (B2C) market where customers are exercising more control over how, when and where their parcels are delivered. This is due to the growth in e-commerce, customer-centric disruptive start-ups and the introduction of automation and alternative high-tech delivery models. In order to be competitive, courier services need to be supported by a nationwide, if not a global network. Mergers and acquisitions are increasing as companies seek to attract volumes and extend networks. Smaller players are being taken over by the larger role players as they do not have the network to provide a cost-effective service to both high-volume metropolitan centres and low-volume rural areas.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 12
4.1.2. Regulations 14
4.1.3. Enterprise Development and Social Economic Development 18
4.2. Continental 19
4.3. International 22
5. INFLUENCING FACTORS 26
5.1. Economic Environment 26
5.2. Rising Operating Costs 27
5.3. Electronic Communications and e-Commerce 28
5.4. Disruptive Start-ups 29
5.5. Technology, Research and Development (R&D) and Innovation 30
5.6. Labour 33
5.7. Cyclicality 37
5.8. Environmental Concerns 37
5.9. Crime and Security 38
6. COMPETITION 39
6.1. Barriers to Entry 40
7. SWOT ANALYSIS 41
8. OUTLOOK 42
9. INDUSTRY ASSOCIATIONS 42
10. REFERENCES 43
10.1. Publications 43
10.2. Websites 44
COMPANY PROFILES 46
ARAMEX SOUTH AFRICA (PTY) LTD 46
BIDAIR SERVICES (PTY) LTD 49
COURIER AND FREIGHT GROUP (PTY) LTD (THE) 52
COURIER GUY (PTY) LTD (THE) 56
COURIER-IT S A (PTY) LTD 59
CROSSROADS DISTRIBUTION (PTY) LTD 62
DHL INTERNATIONAL (PTY) LTD 66
DPD LASER EXPRESS LOGISTICS (PTY) LTD 69
DSV SOUTH AFRICA (PTY) LTD 72
FEDEX EXPRESS SOUTH AFRICA (PTY) LTD 75
FREIGHT INNOVATIONS (PTY) LTD 77
GLOBEFLIGHT WORLDWIDE EXPRESS (SA) (PTY) LTD 79
INTERNET EXPRESS (PTY) LTD 83
ISICABUCABU FRANCHISING (PTY) LTD 85
LASER GROUP (PTY) LTD (THE) 87
RAM TRANSPORT (SOUTH AFRICA) (PTY) LTD 89
RTT GROUP (PTY) LTD 92
SKYNET SOUTH AFRICA (PTY) LTD 94
TAKEALOT ONLINE (RF) (PTY) LTD 96
TNT EXPRESS WORLDWIDE (SA) (PTY) LTD 99
UPS SCS SOUTH AFRICA (PTY) LTD 101
VALUE LOGISTICS LTD 104
VIRTUAL LOGISTICS (PTY) LTD 109