After strong initial demand, it has grown into an on-demand delivery platform encompassing food and grocery delivery to clients via its mobile app and web app which features retailers such as Woolworths, Pick n Pay and Spar using its mobile app.
It has grown its foothold outside of Johannesburg, and is now also active in Pretoria, Durban and Cape Town.
“The reason why we are so excited is because the opportunity ahead of us is enormous. South Africa is a R1 trillion (US$54 billion) grocery market and less than one per cent of that is bought online,” said Chief Executive Officer Donald Valoyi.
“It’s an enormous category that’s highly under-penetrated online. The reason why e-commerce is very small in South Africa is primarily because groceries were not online and Zulzi wants to fast track the growth of online grocery delivery,” he added.
The startup charges a service fee that ranges from 0% to 12.5%, depending on who the retailer is. In addition, a flat fee of R45 (US$2.44) is levied on deliveries. Deliveries are limited to within a 6km radius of the nearest grocery retailer.
In 2017 Zulzi netted a R2million (US$108,000) investment from IDF Capital of which last year the start-up bought back part of the stake held by the fund in the company.
According to Statista, revenue in the eCommerce market in South Africa amounts to US$3.706 billion in 2020. It is expected to show an annual growth rate (CAGR 2020-2024) of 10.3%, resulting in a market volume of US$5.482 billion by 2024.