The South African Post Office (Sapo) is collapsing, with the state-owned company auctioning off branches, failing to pay staff medical aid contributions, cutting jobs, and consistently falling short of its delivery targets.

Sapo has also racked up significant debt, and despite bailouts from National Treasury, its financial situation isn’t improving.

However, there are several alternatives to the Post Office that offer similar services.

In early June 2023, a National Treasury presentation to parliament revealed that Sapo is forecast to make a R2.1 billion net loss for the 2022/2023 financial year.

This is despite receiving more than R10.39 billion in government bailouts since 2014.

Sapo’s statutory debt obligations total R2.4 billion, including R1.1 billion due to the Post Office Retirement Fund, R539 million to SARS, R596 million to Medipos, and R108 million to UIF. Sapo’s creditors amounted to R5 billion as of March 2023.

In April 2023, the Post Office was placed under provisional liquidation by the Pretoria High Court following a successful application by a creditor owed money for rent.

However, former Sapo CEO Mark Barnes said it had already been bankrupt for 18 months leading up to the High Court decision.

Sapo has also failed to meet its delivery targets for over a decade.

The Independent Communications Authority of South Africa mandates delivery targets for Sapo, which the state-owned company hasn’t come close to hitting since 2014. The last time it met its target was before 2012.

While it hasn’t been shut down yet, long queues at branches that are still open may mean South Africans are looking for alternative courier services and companies that offer licence disc renewals.

MyBroadband looked for cost-effective point-to-point private courier and licence disc renewal alternatives to the Post Office. These are listed and summarised below.

Point-to-point courier: DSV Locker

DSV offers point-to-point delivery services with prices ranging from R55 to R120, depending on the parcel’s size. It has over 400 lockers nationwide at Engen petrol stations and other public locations.

When sending a parcel, DSV sends the recipient a notification when it arrives at the locker you selected for collection. Similarly, you will be notified when a package sent to you arrives.

Point-to-point courier: Easy Collect & Drop

Easy Collect and Drop (ECD) provides courier services for three scenarios — ECD point to ECD point, door to door, and ECD point to door. Prices start at R35.

ECD customers can pick up or drop off parcels at its smart lockers or partner stores, with the company boasting that customers in Cape Town and Gauteng get their parcels within 24 hours.

Point-to-point courier: Pargo

Pargo doesn’t specify consumer pricing on its website but says it has built a network of over 2,500 pick-up points across the country.

This results from its partnerships with retailers like Clicks, Lewis Stores, and 3@1.

Point-to-point courier: Paxi

PEP-owned Paxi is a point-to-point courier service with over 2,800 pick-up points across South Africa.

Prices start at R59.95, and customers can collect parcels from PEP, PEP Cell, PEP Home, ShoeCity, and Tekki Town stores across South Africa.

Point-to-point courier: PostNet

Postnet offers courier prices starting from R99 for parcels up to 5kg. It charges R20 for each kilogram over 5kg.

The private postal agency says its courier deliveries take two to three working days and has over 400 locations across South Africa. However, it notes that deliveries to outlying areas may take longer.

Point-to-point courier: Pudo

Like DSV Locker and ECD, Pudo uses smart lockers as secure pick-up and drop-off points, with prices ranging from R50 for parcels under 2kg to R200 for packages weighing 20kg.

However, it notes that prices vary based on package dimensions. Therefore, a bulky parcel that weighs less than 2kg will cost more to ship.

Licence disc renewal: PayCity

PayCity is the cheapest of the licence disc renewal services listed. It charges R113.85 for renewals, including the administration fee and delivery costs.

However, it is only available to motorists in Gauteng, the City of Cape Town (metro only), Free State, Northern Cape, Mpumalanga, Limpopo, and North West.

Licence disc renewal: National Traffic Information System (Natis)

The Road Traffic Management Corporation’s online National Traffic Information System for renewing driver’s licence cards and licence discs was launched in February 2022.

It charges a R72 administration fee and R99 delivery fee for an overall cost of R171. It is available to motorists in all provinces in South Africa.

Licence disc renewal: FNB

First National Bank (FNB) offers its customers living in Gauteng and the City of Cape Town the option to renew their licence discs through the FNB app.

While delivery is included, the bank charges R199 for the service.

Licence disc renewal: Spar

South African motorists can renew their licence discs at select Spar stores across the country.

The grocery retailer charges R199 for the service, including delivery to the store. It is the only licence disc renewal service listed that doesn’t have an online platform.

Licence disc renewal: Pick n Pay

Pick n Pay, despite cutting the price of its licence disc renewal service, is the most expensive option listed.

The retailer charges a R250 administration fee and R79.99 delivery fee, for a total of R329.99.