Spar partners with Uber Eats as online retail race intensifies in South Africa
Retailer expands delivery partnership to over 275 stores as on-demand retail market grows rapidly
SOUTH AFRICA – Spar is expanding its partnership with Uber Eats to capture a larger share of South Africa’s fast-growing online retail and grocery market.
What began as a small-scale rollout in July has quickly changed into a wider collaboration, with 275 Spar outlets now offering on-demand delivery through the Uber Eats app and plans underway to extend that number to more than 800 stores.
The development signals Spar’s intention to challenge established players in South Africa’s online grocery segment, where convenience and delivery speed are becoming key differentiators.
According to McKinsey’s State of Grocery Retail 2024 report, the country’s online grocery sales have surged by 54% annually since 2019, reaching about US$1.24 billion (R23 billion), with over a quarter of consumers saying they intend to spend more on digital grocery platforms.
Shoprite’s Sixty60 app continues to dominate the on-demand grocery market, setting the pace for rapid fulfillment and customer reach, but the Spar-Uber Eats alliance is positioning itself as a serious contender.
With nearly 80% of Spar’s outlets independently owned, integrating Spar, Tops, and KwikSpar stores into Uber Eats provides hundreds of small business owners with direct access to online shoppers.
Blake Raubenheimer, Spar’s omnichannel executive, said in a statement that the retailer’s collaboration with Uber Eats aims to extend its long-standing community presence into the digital space.
Online retail nears double-digit share
The expansion comes at a time when South Africa’s e-commerce industry is experiencing unprecedented growth.
Data from research firm World Wide Worx shows that online retail accounted for around 8% of total retail sales in 2024 and is projected to hit double digits in the coming months.
Arthur Goldstuck, CEO of World Wide Worx, said total online retail sales were valued at approximately US$5.2 billion (R96 billion) in 2024 and are forecast to climb to US$7 billion (R130 billion) by 2025.
The Online Retail in South Africa 2025 report also found that online shopping grew by 35% year-on-year in 2024, maintaining the same growth rate as in the previous year.
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