Spaza Eats: Revolutionizing Township Deliveries in South Africa

A township-focused on-demand delivery service, Spaza Eats, is taking South African townships by storm. Launched in July 2023, the platform has already garnered over 60,000 users, with thousands of merchants and drivers making it one of the most promising delivery services in the country. According to a Sunday Times report, the founder of Spaza Eats, Talifhani Banks, identified an untapped market in township economies, which have often been overlooked by major delivery operators due to perceived crime risks.

The Vision Behind Spaza Eats

Talifhani Banks, the visionary behind this venture, is a young entrepreneur from Makhado, Limpopo. With a solid background in retail statistics and econometrics, gained through his work with companies like Daymon, Pick n Pay, Grohe, and AutoZone South Africa, Banks recognized the need for an on-demand service specifically designed for South Africa’s township economies.

The primary goal of Spaza Eats is to link township spaza shops, local farmers, and food outlets directly with their communities. By doing so, the platform creates a seamless and accessible delivery system for essential goods like food, mobile phones, and even solar panels.

Exponential Growth and Expansion Plans

In just over a year, Spaza Eats has successfully onboarded 4,500 merchants and grown its delivery team to include 1,105 independent motorcycle drivers. The platform’s reach currently extends to parts of Gauteng, Cape Town, Durban, and Limpopo, but its ambitions don’t stop there. By June 2025, the company plans to cover every small town in South Africa before expanding into other African countries, including Kenya, Nigeria, Rwanda, and the DRC.

In addition to food deliveries, Spaza Eats has ventured into delivering a range of goods, such as cellphones and solar panels, reflecting the varied needs of township consumers. The platform’s business-to-business marketplace, Spaza Market, further promotes trade between local restaurants, farmers, and retailers. Through strategic partnerships with BP Express and the National Agricultural Marketing Council, Spaza Market aims to create a robust trading ecosystem in township economies.

Technological Challenges and User Feedback

Despite its rapid growth, the platform has faced challenges. The Spaza Eats app, available for both Android and iOS, has received mixed reviews. On Google Play, the app has been downloaded between 10,000 and 50,000 times, with an average rating of 2.9 from 42 reviews. Common complaints have centered on app functionality and delays in deliveries, with some users reporting that deliveries took several hours.

However, there are also plenty of satisfied customers, especially those who appreciate having access to products and services previously unavailable in their neighborhoods. The iOS version of the app fares slightly better, with a 3.4-star rating from 25 reviews.

Competition in the Township Economy

While Spaza Eats has made significant strides, it faces stiff competition from established giants like Takealot and Uber. Takealot, in partnership with the Gauteng Provincial Government, launched the Takealot Township Economy Initiative in April, committing R150 million to support township e-commerce. The initiative includes the Mr D Mzansi Trailblazer programme, which offers independent township restaurants benefits like no sign-up fees, advertising credits, and trading tools to boost sales.

Meanwhile, Uber has recognized the potential of the township economy and announced plans to invest R200 million to expand its food delivery services into Gauteng townships. Historically, Uber’s focus has been on affluent suburbs, but the untapped potential of the township market has led to a shift in strategy.

The Hidden Power of Township Economies

Experts like GG Alcock, an informal economy specialist, have highlighted the massive economic potential in township businesses. Alcock noted that the informal food market is driven by two key factors: township residents, especially those living in one-bedroom backrooms, prefer to buy fast food rather than cook in cramped spaces, and load-shedding has made cooking even more challenging, further driving demand for fast food alternatives.

Alcock shared the story of Mbali, a fast-food seller in a township who generated R80,000 in monthly profit from selling chickens. Such examples underscore the growing profitability of township businesses, with informal enterprises estimated to generate R90 billion annually, alongside an additional R110 billion from licensed taverns.

Conclusion

Spaza Eats’ success in the township economy is a testament to the untapped potential of this market. With plans to expand nationally and beyond, it’s clear that Spaza Eats is just getting started. However, the service will need to continuously innovate and improve its technology to stay competitive against well-established players like Takealot and Uber.