Woolworths has conceded to escalating operational expenses by elevating the delivery charge for its Woolies Dash on-demand service to R45, effective from 10 November 2025. This adjustment signifies a 29 per cent escalation from the existing R35 fee, which had aligned with industry norms since Checkers disrupted the sector in November 2019 with the introduction of its Sixty60 platform. At that juncture, Checkers established the benchmark at R35, prompting competitors such as Pick n Pay’s asap!, Woolworths, and Spar2U to adopt equivalent pricing upon launching their respective offerings.
The retailer has explained that this revision is essential to sustain its commitment to superior quality and freshness, whilst continually enhancing the digital customer journey in light of mounting expenditures. As reported by Moneyweb, the capacity of these merchants to maintain static fees has predominantly stemmed from the swift expansion of their services, enabling economies of scale that diminish per-unit delivery costs, encompassing assembly and transportation. As order volumes proliferate, proportional increments in personnel or resources are not required, thereby offsetting inflationary pressures.
Nevertheless, with expansion rates beginning to temper, fundamental cost rises in areas such as remuneration, fuel, and leasing can no longer be as readily absorbed by revenue growth. Technically, Checkers was the initial mover, discreetly augmenting its fee by R1 to R36 commencing 1 July 2025. This subtle alteration might evade notice among typical consumers, who could presume the charge had consistently been R36 given the proximity of the figures.
Regarding Woolies Dash, the platform registered a 41.6 per cent sales augmentation in the preceding year concluding 29 June 2025, juxtaposed against 71.2 per cent in the prior period. Notably, five per cent of Dash patrons represent newcomers to the brand. Collectively, the group’s electronic channels—including online, collection services, and Dash—account for 6.6 per cent of food revenues in South Africa, approximating R3.5 billion. Dash has been the principal impetus behind this progression.
Conventional grocery ordering via websites with deferred deliveries has waned in popularity compared to the immediacy offered by on-demand alternatives. Woolworths has affirmed that Dash operates profitably on a comprehensive cost basis, incorporating all pertinent expenditures. Analogously, rivals Pick n Pay and Shoprite have verified that their asap! and Sixty60 services yield profits under identical criteria.
Pick n Pay documented a 44 per cent year-on-year advancement in on-demand deliveries across asap! and Mr D for the first half concluding August 2025, though it has withheld specifics on online’s contribution to aggregate sales. Sixty60 exhibited 47.7 per cent sales growth for the year ending June 2025, with Shoprite revealing total revenues from this avenue at R18.9 billion in September 2025.
Sixty60 dominates as the pre-eminent on-demand grocery delivery provider in the nation, commanding a market share substantially exceeding sixty per cent, potentially nearing seventy per cent, with certain appraisals elevating this to eighty per cent. It incorporated general merchandise from its Checkers Hyper outlets in October 2024, accelerating expansion, albeit with a distinct R50 delivery fee for this segment, diverging from the standard R35 or R36.
The conglomerate has also unveiled a subscription scheme, XtraSavings Plus, granting unlimited deliveries for purchases surpassing R350 at R99 monthly. One perspective on the inherent costs of such operations is Shoprite’s milestone of one hundred million orders, equating to R3.5 billion in fees over more than five years at R35 per delivery, excluding subscription impacts. This implies that income from fees and subscriptions approaches a R1 billion annual pace. According to Business Day, these dynamics underscore the sector’s maturation, where initial aggressive pricing yields to sustainable models amid economic constraints.
As noted by Reuters, South African retailers grapple with subdued consumer sentiment, exacerbated by high interest rates and unemployment, prompting strategic fee adjustments to preserve margins without alienating price-sensitive customers. Current market valuations reflect these pressures: Pick n Pay shares stand at R27.82, down 2.32 per cent; Shoprite at R289.37, down 1.09 per cent; Spar at R108.68, down 0.07 per cent; and Woolworths at R53.12, down 1.23 per cent as of 7 November 2025.