Gotta hurry? Who knew the day would come that you would have to watch ads to get a bit of toilet paper at a public loo? Yes, it’s real. 🤷‍♀️

In This Open Letter

E-commerce is booming and we haven’t even perfected township delivery yet – this startup’s giving regular Joes a new way to earn…

Getting your purchase same day is becoming the norm: Sixty60, PnP ASAP!, even e-commerce giants Takealot and Amazon are doing it. And it works in areas that are already well served.

But despite SA’s e-commerce segment set to reach a cool R130 billion by the end of 2025, townships and informal areas remain out of the same-day, last-mile conversation.

The opportunity in going where the people are

SA’s vibrant township economy itself is a staggering R900 billion (nearly 7x the size). There’s money to be made, but if formal retailers keep skipping where there’s real demand, they’re going to be leaving money on the table.

Retail is seriously shifting online: Online was 6% of all retail sales in 2023, 8% in 2024 and is expected to hit 10% at the end of 2025.

And with townships housing some 21 million people and SA’s National Taxi Alliance claiming to move 15 million+ commuters from there every day, you know there’s A LOT of movement to and from townships. 

An opportunity for last-mile to reach people where they live?

The local startup delivering the goods

Gobuddy is a crowdsourced delivery network leveraging everyday commutes into delivery routes in townships.

GoBuddy plugs ordinary people into e-commerce deliveries through a route-matching system, while merchants integrate at checkout via Shopify or WooCommerce. And it’s smart: If GoBuddy matches a transporter already moving along the right route, the parcel goes same day. If not, it auto-hands off to the retailer’s existing courier, so operations never stall.

Crucially, Gobuddy bakes in trust. Transporters are verified, WhatsApp threads link the stores, their customers and the transporter making the delivery – complete with photo pickup and an OTP at drop-off to make sure it’s getting to the correct doorstep.

Transporters make R43 from the “Same-day into townships for R60” delivery fee for simply taking an extra item with them on a route they’re already travelling.

Opportunities for all

Leon Strumpher, founder and CEO of Gobuddy, tells us they already have 12’000 transporters signed up, with a 10x waitlist ready to roll out as they scale.

And at R60 a pop, it’s competitive on price with other couriers. But Gobuddy isn't solving cost; they’re solving reach. And therein might lie the rub. 

SA’s unemployment rate sits over  33%. So a delivery model that also creates earning potential goes beyond logistics. It unlocks economic participation.

GoBuddy’s wager is simple. Match human movement to merchant demand, then make townships a first-class delivery destination. If that unlocks even a sliver of the R900 billion township economy for same-day commerce, the map of South African retail changes.

We’re watching this space.

SMEs employ 60% of the workforce, producing 40% of GDP, and SA’s economy is poised for growth.

Lula believes SMEs that do these 5 things will be best positioned to capitalise on that potential:

1. Know your processes inside out: Traditional banking is evolving as new financial tools and AI-driven insights offer more flexible and scalable options. If you know where you’re at and what you need, you’ll be better positioned to leverage these flexible new financial tools.

2. Maintain good financial records: Access to more data is giving lenders more insights into every part of the economy, which makes more funding accessible. Good records ensure you’ll virtually always have access to capital.

3. Focus on mobile-first digital commerce: The digital economy looks set to produce 15-20% of SA’s GDP this year. Invest in user-friendly, mobile-optimised e-commerce platforms to expand your reach and capture market share.

4. Ensure smoother digital payments: We’re headed towards a cashless SA by 2035. Adopt mobile wallets, QR code payments, EFT services and contactless terminals now to keep up with consumer demands.

5. Invest in digital infrastructure and tech: Technologies like IoT, AI and cloud computing offer SMEs opportunities to enhance efficiency and customer experience, while automating tasks to increase competitiveness. Assess your current digital capabilities and address skills gaps now to stay ahead of the curve – cloud services offer a cost-effective way to start.

And, if you haven’t opened your Lula business banking account yet, get yourself a free one, with zero monthly fees, right now…

🪪 Digital ID Boost. Local startup Contactable just snagged a hefty $13.5 million to boost its digital ID tech across Africa. Led by Venture Capitalworks, this cash infusion promises to expand their reach and innovate in AI and self-sovereign identity fields. Congrats, Contactable team.

🎉 Winner Winner AI Chicken Dinner. More than 240 tech enthusiasts from 20 countries showcased innovative AI solutions at Standard Bank's 11th Kuunda Disrupt Hackathon, spotlighting how AI can shake up Africa's financial services. Homegrown solutions for homegrown challenges.

🛵 Uber's Retail Drive. Uber forecasts its non-restaurant delivery business to hit $12.5 billion in bookings by end-2025, up 25% from earlier predictions, with this surge outpacing its ride-hailing growth. We’re watching this closer to home…

📦 India Meets Rooibos. South African brands like Funky Ouma and Ina Paarman have made their debut on the shelves of the Indian retail giant, Reliance Retail. This move positions familiar local favourites in a vast market of over a billion consumers. A spicy leap for the Western Cape's export game.

✅ The Stack. Founders need reliable tools and suppliers. That’s why our Founder’s Stack gives you your own CFO for a fraction of the cost with OCFO, WhatsApp marketing with 2'000% ROI powered by Chat Inc, and loads more vital startup tools & services.

Renier’s masterclass unpacked world-class sales decks: The tricks to convert 10x better when pitching your product/service.

We rallied reviews for Hex’s Zandeo business case: Clearer problem, sharper ROI and next step milestones to test with early customers.

Omar got warm intros to brand and strategy pros to launch his Afrikaans product: Positioning, tone and a GTM plan locked in.

Candice is prototyping a brand shoot with Adobe Firefly + Google’s Whisk: 50+ snapshots, fast refinements, near free and video is up next.

Find your founder community. Join The Founder Collab, it’s where 100+ real SA founders help each other to build better, faster every day.

Last Friday, we told you about opportunities in concussion-prevention tech in pro sports, asking if you had ever had a concussion. Most say yay, quite a few…

🟩🟩🟩🟩🟩🟩 🏉 Jip, quite a few playing sports (34%)

🟨⬜️⬜️⬜️⬜️⬜️ 🍺 This one time at varsity… (11%)

🟨🟨🟨🟨⬜️⬜️ 🥴 Not that I can remember (24%)

🟨⬜️⬜️⬜️⬜️⬜️ 🤕 Building a business feels like getting a daily concussion (7%)

🟨🟨🟨🟨⬜️⬜️ 🤞 Not yet (24%)

Your 2 cents…

Ag shame, Joanne. Ja, they’re beautiful, but you gotta know your stuff around a horse. 🐴

The Future of E-Commerce — CPT 30 Oct, 16:00 to 21:00— Hear Takealot CEO Frederik Zietsman on scaling in SA’s ecom landscape. Get R100 off with an early bird ticket now. Book here

AI in Finance Webinar — Online 15 Oct, 12:00 — Join OCFO's Dana Pretorius live on LinkedIn to explore how AI is transforming finance. Free. Register here

SA Auto Week — Gqeberha 1–3 Oct — Africa’s leading auto industry event. 3 days, 4 stages, 20+ panels, VIP networking & more. Tickets here.

CX in Financial Services — JHB 2 Oct — Explore AI, mobile, trust & trends shaping customer experience in BFSI. More info here.

Hosting a demo day, panel, founder meetup or tech event? Let us know, and we’ll feature it for FREE.

🛠 Tool to Try: Wayumi helps you find travel buddies, split trip costs and plan group adventures.

🤯 That’s Interesting: The first case of an animal planning for the future was a chimp stockpiling rocks to throw at zoo visitors.

🎯 Next Level: How to skip stones like a legend.

💡 Hack: If you want people to like you, just be around more often.

🌐 Wow Site: This site logs every failed doomsday prediction. Spoiler: We’ve survived a lot.

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