Fast food deliveries are exploding in South Africa - here are the winners
- Fast food deliveries are exploding in South Africa, with Mr D Food seeing order growth of 210%.
- The home-grown delivery service has processed over R500 million worth of orders the past 12 months, and has over 270,000 monthly active users.
- Uber Eats and Mr D Food collectively account for 90% of South Africa’s third-party fast food delivery market.
South Africa’s fast food delivery services have boomed the past year, with Mr D Food alone reporting growth of 210% in the number of orders.
Mr D Food, owned by multinational Naspers, has also processed over R500 million worth of orders the past 12 months, and has over 270,000 active users.
“Food delivery in South Africa is still under-penetrated and growing rapidly, as is the case in many markets across the globe,” Naspers Ventures CEO Larry Illg said in a statement.
“We believe the potential for online food delivery businesses could be even greater in high-growth markets like South Africa, versus what has been observed in the West.”
Uber Eats and Mr D Food collectively account for 90% of South Africa’s fast food delivery market.
Mr D Food surpassed Uber Eats, which launched in South Africa in 2016, as the dominant fast food delivery player in June 2016 according to user numbers.
Uber Eats is estimated to have 550,000 app downloads - growing by roughly 10,000 downloads a week – and Mr D Food surpassed 1 million downloads last week.
Mr D Food CEO Devin Sinclair said the company’s success lied in its ability to transform itself from a phone ordering business to online ordering.
“We were able to successfully build the business by always putting our customers first, with the continued backing of a globally-reputed food delivery investor, Naspers,” Sinclair said.
Business Insider South Africa is a 24.com publication, a subsidiary of Media24, a Naspers company.
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