Leading local online retailers Kalahari.com and takealot.com have announced that they will be merging operations. The merger will enable the companies to offer a wider product selection and improved delivery services.
The decision was based on the fact that local e-tailers simply do not have the scale to compete with the likes of Amazon and Alibaba.
Oliver Rippel, senior executive responsible for Kalahari, says that companies must work together to prosper, or face closure.
Online retail only accounts for approximately 1,3% of the total market for consumer goods in South Africa.
The merger is subject to Competition Commission approval and will only become effective once the commission has ruled.