Pargo looking to expand South African parcel point network

Pargo has informed Post&Parcel that it is looking to expand its parcel point network in South Africa, with a number of new partners set to come online. Pargo launched its network in December with 14 parcel points – and it has since expanded rapidly. Company co-founder Derk Hoekert told Post&Parcel today (4 June) that Pargo currently has about 170 parcel points, with more coming online every week.

About 130 of these parcel points are located in FreshStop convenience stores at Caltex gas stations. Pargo is also working with a variety of other retail locations, including video stores and office stationery suppliers.

One of the key benefits of working with gas service stations, said Hoekert, is that they are open round the clock – whereas South African post offices will close for the evening. Customers are notified via SMS and email when their package has arrived at the Parcel Point, and they can then pick it up at their convenience.

“This is the first time in South Africa that consumers have been able to collect their parcels whenever they want,” said Hoekert.

The parcel points can be used for both collections and returns – which, as Hoekert pointed out, is important when dealing with the e-commerce market.

Hoekert anticipates that Pargo will continue to set up parcel points at more FreshStop stores across South Africa – but the company will focus on setting up in locations where there is an identifiable customer demand.

While FreshStop stores account for the majority of the parcel point locations, Pargo is keen to reach out to new partners, both large and small. Hoekert said that Pargo is talking with a number of pharmacies, for example.

Pargo has been concentrating on building up its South African network, but in the future it may look to expand into nearby countries, such as Namibia and Botswana.