Durban - Two KwaZulu-Natal-based companies, City Logistics and Clearwater Capital, have acquired the internationally recognised Fastway Couriers.
Fastway Couriers, founded in New Zealand in 1983, has around 1,700 franchises, 300 of which are in South Africa.
Management teams of Clearwater and City Logistics say the acquisition means that there will be a major logistics provider to the fashion, retail and e-commerce sectors.
The acquisition also means City Logistics, which has been in operation since 1987, will be able to serve existing and new customers with a small parcel solution.
“Logistics companies are increasing their workforces and technology to keep up with increasing e-commerce demand and, in doing so, are contributing much-needed jobs.
“Fastway’s unique regional franchise model provides an opportunity for micro-entrepreneurs to benefit from the growth opportunity in the e-commerce sector,” said Keval Mehta, Clearwater Capital’s Executive Director.
Clearwater manages assets totalling R1 billion.
While Takealot and Amazon battle for the lion’s share of the online market, South Africa’s e-commerce sector has undoubtedly grown in recent years.
With a revenue of around $5 billion (about R83.6 billion) in 2021, South Africa’s e-commerce sector is the 41st largest in the world, according to ecommerceDB.
Bearing this in mind, CEO of City Logistics, Ryan Gaines, said the move was a strategic one, which allows the companies to serve a bigger market.
“This is a strategic investment, giving us the opportunity to increase services offered to our existing clients, to serve a new customer base and to provide solutions for a market that requires options to reach their end customers. With the anticipated growth of e-commerce, it is a critical part of our growth strategy.
“The combined businesses of City Logistics and Fastway offer one of the most affordable delivery options in South Africa for SMEs and corporates,” Gaines said.
IOL