How the pandemic has changed the online food delivery market in SSA

The online food delivery market in South Africa is experiencing a significant transformation, with the penetration of the segment expected to reach 26% this year and the user base projected to hit 22.5 million by 2026, according to research by Statistica. CNBC Africa recently interviewed Nakampe Molewa, the General Manager of UberEats Sub-Saharan Africa, to delve deeper into the evolving market dynamics and the company's plans for the continent. Molewa highlighted the three distinct phases that the industry has witnessed, starting from the pre-pandemic days when the sector was nascent but growing rapidly, to the pandemic period where business growth soared threefold, and currently, as the economy reopens, seeing a reversion to long-term projections with robust growth. Despite the shift towards a post-COVID-19 normality, online delivery remains a vital component of the business landscape, with sustained healthy growth observed even as regulations ease. Molewa emphasized the significance of online delivery channels for partners, noting the increasing traction among various stakeholders. The interview also explored UberEats' expansion plans across the African continent, with a focus on leveraging unique market characteristics in different regions. In countries like Kenya, where motorbikes are prevalent, UberEats finds a ready market for courier partners, while the proliferation of dark kitchens in other parts of Africa presents new growth opportunities. Molewa highlighted the company's interest in exploring these emerging trends and exciting prospects on the continent. Addressing competition in the sector, Molewa emphasized the importance of profitability and sustainable business practices over merely chasing market share. Focusing on restaurant selection and ensuring a strong network of courier partners, UberEats aims to meet diverse consumer demands and offer innovative services beyond food delivery, such as groceries and partnerships with other businesses like Legends Barbershop. By staying attuned to consumer preferences and market trends, UberEats aims to solidify its position as a leading player in the online food delivery market in South Africa and beyond.