The Shoprite Group has entered into a joint venture (JV) with its existing Checkers Sixty60 logistics partner, the RTT Group, in which both parties will own 50%.
The transaction follows the rapid growth of Shoprite’s on-demand grocery solution, Checkers Sixty60, in which RTT On-Demand, a division of the RTT Group, has played a pivotal role in last-mile logistics.
Going forward, the JV is to advance the technology, learnings and intellectual property created to date, as well as enable continued development of the digital and customer experience in line with Shoprite’s e-commerce plans.
The transaction, which envisages Shoprite Checkers holding a 50% interest for an undisclosed sum, is subject to the fulfilment of commercial and regulatory conditions, and includes RTT’s on-demand technology platform, management and operations teams.
“This transaction is in line with our digital strategy,” says Shoprite Group CEO Pieter Engelbrecht.
“Owning the last-mile home delivery aspect of our Sixty60 service is an important part of building out our digital ecosystem for customers.
“We consider the combined capability we have built with RTT to be a critical competitive advantage and key to Sixty60’s rapid growth.
“This RTT on-demand JV will allow the group the opportunity to continue enhancing our order fulfilment and last-mile delivery capabilities, whilst giving us the opportunity to grow our precision retailing efforts for our customers.”
Shoprite’s digital tech hub, ShopriteX, spearheaded the Checkers Sixty60 app, which has become the number one grocery app in South Africa with more than two-million app downloads.
Going forward, the RTT on-demand JV should allow ShopriteX the opportunity to continue to evolve its digital experience.
“RTT's continued relationship with the Shoprite Group brings sustainable scale, capability and technology development to RTT's e-commerce fulfilment plans,” says RTT Group CEO Gavin Rimmer.
“It also provides customers with access to an extensive geographic network and range of service options for their on-demand needs.”
“We anticipate this transaction will add to the more than 4 000 jobs already created by Sixty60 as we continue to grow in the communities in which we operate,” adds Engelbrecht.