Despite being one of South Africa’s top grocery delivery services, Checkers Sixty60, powered by the logistics platform Pingo, is facing challenges in retaining local drivers.
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Although Pingo pays what it describes as ‘best-in-class rates’ for delivery, only 23% of the platform’s 7 000 drivers are South African, and nearly 80% of these drivers drop out before completing the programme, according to comments from Shoprite chairperson Wendy Lucas-Bull during the company’s recent AGM, as reported by News24.
To combat the low retention rates, Pingo has established five training centres across the country. However, the demanding nature of the job and significant safety concerns have deterred many potential drivers.
According to News24, drivers on the Pingo platform reportedly earn between R18,000 and R50,000 monthly. However, Shoprite did not provide specific pay ranges, stating only that Pingo offers ‘the best-in-class rates in the industry.’
Further complicating matters, Pingo’s classification of drivers as ‘independent contractors’ excludes them from employment benefits like health insurance, paid leave and job security.
According to The Daily Investor, legal experts argue that Pingo’s drivers effectively meet the criteria for employee status, as many work exclusively for Pingo and adhere to its schedules and targets.
Michael Bagraim, a Democratic Alliance MP, voiced concerns that this arrangement could lead to exploitative conditions, pushing drivers to work longer hours and potentially endangering their safety and that of the public, The Daily Investor reports.
The financial realities of the job add to the pressure. As BusinessTech explains, the average monthly income for a Sixty60 driver is around R7 600 before deducting expenses. Operational costs, including fuel and bike rentals, further reduce take-home pay; fuel expenses average R3 200 monthly, and bike rentals cost about R1 600. These high costs, paired with variable minimum fare guarantees, have led to several driver protests seeking more predictable and fair pay (BusinessTech).
In response to safety and employment concerns, Shoprite confirmed plans to implement additional safety measures, including improving bike and helmet standards and adapting delivery schedules to accommodate adverse weather conditions, according to News24.
Now that Shoprite’s Pingo acquisition is complete, the company faces increasing pressure to improve working conditions and ensure the sustainability of Sixty60’s rapid expansion within South Africa’s competitive grocery delivery market.