South Africa’s online grocery market is shifting rapidly, and Spar, which is coming from behind in the on-demand grocery delivery market, is betting big on its partnership with Uber Eats to grow its market share.
What started as a limited roll-out with Uber Eats in July has turned into an more expansive collaboration, with 275 Spar stores already live on Uber Eats and plans, in time, to push that number past 800.
The move comes as on-demand grocery delivery becomes a major retail battleground in South Africa.
Shoprite’s Sixty60 app remains the clear market leader, having set the pace for convenience and speed in local e-commerce. But Spar and Uber Eats are now sharpening their competitive edge.
According to McKinsey’s State of Grocery Retail 2024 report, online grocery sales in South Africa have grown at an annual rate of 54% since 2019, reaching R23-billion, and more than a quarter of consumers say they plan to increase their digital grocery spend.
With around 80% of its stores independently owned, bringing Spar, Tops and KwikSpar outlets onto Uber Eats connects hundreds of local entrepreneurs to new digital customers.
“Spar’s roots are in community,” said Blake Raubenheimer, the retailer’s omnichannel executive in a statement on Tuesday. “Partnering with Uber Eats lets us carry that community connection into the digital economy.”
Double digits
News of the expansion of the companies’ partnership comes a month after research firm World Wide Worx revealed data that showed online retail makes up nearly 10% of total retail sales in South Africa.
Online retail sales as a proportion of total retail revenue grew to 8% in the 2024 calendar year and is on track to reach double digits in the coming months, World Wide Worx said in its Online Retail in South Africa 2025 report.
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“Total retail sales reached R96-billion in 2024 and are estimated to reach R130-billion in 2025,” said World Wide Worx CEO Arthur Goldstuck. The report shows online shopping grew by 35% year over year in 2024, matching growth in 2023. – © 2025 NewsCentral Media
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