Woolies Dash drivers reveal insider details
BusinessTech spoke to Woolies Dash delivery drivers, who said that although they enjoy their work, the road is far from smooth.
As the demand for on-demand delivery services grows, the challenges faced by drivers are garnering more attention.
Like other major grocery retailers in the country, Woolworths has launched its Woolies Dash service, which offers on-demand delivery.
Launched at the end of 2020, the company has said that Woolies Dash has been a game-changer for their food business.
“Dash has been a key focus area in driving online sales in our food business and is successfully attracting new customers to our brand,” the company said.
Woolworths’ 2024 annual report revealed that Woolies Dash customers spend more on average basket size, which bodes well for the company.
Woolworths now has over 120 Woolies Dash sites, reaching over 90% of its customer base. Dash sales have increased by 71% year over year.
“This channel is now profitable on a fully costed basis, without any supplier funding,” said Woolworths.
“We will continue to grow our Dash proposition in a sustainable and systemic way, focusing on our key differentiators of elevated quality, freshness, and timely service.”
Impressively, it improved its operational performance 2024, with 95% of Dash orders delivered on-time or early – a 10% improvement from the previous year.
However, none of this would be possible without the contributions of its frontline workers – the Woolies Dash on-demand delivery drivers.
BusinessTech and MyBroadband went to several Woolworths locations to speak to drivers to learn more about their experience.
Like drivers from Checkers Sixty60 and Pick n Pay asap, Dash drivers were told by management that they were prohibited from engaging with the press.
This follows several exposés in 2024 that covered the working conditions, hours and average payments for delivery drivers.
“We were told that if journalists come, we have to call our supervisor,” said one Dash driver, who spoke on condition of anonymity.
On-demand grocery shopping sector
On-demand grocery shopping has revolutionized South Africa’s retail market, offering convenience for consumers and growth opportunities for retailers.
Online retail revenue surged from R4.43 billion in 2013 to over R71 billion in 2023, and it is projected to surpass R100 billion by 2026.
Major chains like Checkers Sixty60, Pick n Pay asap!, Woolies Dash, and SPAR2U have capitalized on this growing demand.
These on-demand delivery drivers are known as gig economy workers. Thanks to delivery incentives, surge pricing, and tips, they can earn more per hour than traditional labour.
These drivers benefit from flexible hours, multiple job opportunities, and the potential to earn more with the number of deliveries they complete.
Some drivers reported that working for companies like Woolies Dash is a great income source, especially since work is scarce.
However, they are independent contractors, not employees, which means they bear their own vehicle costs and lack benefits, similar to Uber drivers.
This work is precarious. A study by Phumzile Princess Ngubeni from the University of Johannesburg points out that this flexibility often comes at the cost of financial stability and labour rights.
Drivers face long hours, low wages, job insecurity, and risks such as crime, safety concerns, and harassment on the job.
Due to being paid per delivery, many try to fit in as many deliveries as possible to generate sufficient income, posing road safety risks to themselves and others.
Woolies Dash delivery drivers share their views
Joel, whose name has been changed for job security reasons, has worked at Woolies Dash for the past two years after working at Checkers Sixty60.
He works five days a week, from 09:00 to 18:00, to support himself and his family. The amount he takes home at the end of the day is sporadic, as drivers are paid per delivery.
On a busy day, he could get at least 12 orders, while a slow day could be a fraction of that.
Dash drivers get a flat delivery rate of R40 per order—R10 more per trip than Checkers Sixty60 and Pick n Pay asap!. They are also subsidised a small fee for petrol based on their distances.
Woolies Dash is managed by OneCart, which hired an agency called BikeSolve to organise its fleet of drivers.
BikeSolve takes a commission of R5 per trip, which means newer riders only earn around R25 to R35 per trip, depending on when they were hired.
Woolies Dash riders may earn slightly more than Checkers Sixty60 as Woolworths pays more for deliveries outside a 5km radius.
They said a typical Woolies Dash driver earns around R7,000 to R9,000 monthly. However, drivers must also provide their own vehicles to operate, covering all related expenses.
A woolworths spokesperson said that the average Dash driver earns between R14 000 and R15 000 per month and their costs are roughly R4 000 to R5 000 per month, depending on their circumstances.
“Thus, the average Dash driver’s net monthly earnings are in the vicinity of R9 000 to R10 000.”
This is because these workers are not regarded as Woolworths employees but as independent contractors.
Michael Bagraim of Bagraim Attorneys and a Democratic Alliance MP said the current system is not great for drivers.
“The employment structure is pretty bad in that it forces the purported employees to take as many trips as possible, putting their lives in danger,” he said.
“As independent contractors, they get no benefits whatsoever and have no protection of our labour law,” he added.
As independent contractors, they are responsible for much of the operating expenses, which significantly reduces their take-home pay.
“I would say almost half [of my salary] goes to petrol, airtime” and other operating costs, said Joel.
Joel said that drivers like him try to squeeze in as many deliveries as possible to make up some of these funds. However, “if I get in an accident, it’s on me.”
He noted there is no penalty if deliveries are late, as “these things happen”.
When asked whether he believes that Woolworths is treating drivers fairly, he said that it really depends on who you ask.
“They are treating me in a way that is not entirely fair because they don’t communicate with us at all,” said Joel.
He cited an alleged lack of communication from Woolworths regarding on-the-road issues and decision-making.
“But, many of us are foreigners. Who are we going to complain to? They know that we desperately need this work,” he added.
Despite the challenges, most delivery drivers have expressed appreciation for the opportunity to earn an income, especially in a country grappling with high unemployment.
However, they have also shared suggestions to enhance their working conditions.
A frequent request is larger support with fuel costs, as drivers are responsible for much of the petrol expenses, which can significantly impact their earnings.
Woolworths response
Shortly after publication, Woolworths provided response, which can be found below:
As a leading retailer, Woolworths has a vision to be one of the world’s most responsible retailers. This extends to our practices relating to everyone in our value chain, and includes the advancement of dignified employment, including fair and equitable treatment of all people who work in the Woolies ecosystem.
Woolies Dash is the same day delivery service that allows customers to order groceries on the Woolworths App and have them delivered in a matter of hours. Woolworths contracts OneCart to manage the majority of the operations associated with Dash, including the contracting of drivers involved in the fulfilment of the service. The demand for online delivery has increased significantly, with Woolies Dash growing by 71% in the last financial year alone – adding 2 200 jobs across the value chain in the process.
While OneCart is an independent service provider, Woolworths has close oversight of the employment conditions of Dash drivers to ensure compliance with the Woolworths Code of Business Principles.
Woolies Dash drivers are independent contractors who benefit from the associated freedoms; they choose when they want to work, they’re able to work for more than one company, and they enjoy more flexibility than traditional employees.
Dash drivers are also rewarded beyond their basic earnings. For example, they receive protective uniforms and delivery equipment at no cost to themselves. Importantly, they have access to significantly discounted Woolworths food, a benefit comparative to what Woolworths employees enjoy. In addition, all Dash drivers are insured for 3rd party claims and damage to their property.
Driver earnings are determined by the number of hours worked, as well as the number of kilometres travelled. In some cases, like on particularly busy occasions or when a new store is opened, a higher rate may be offered to Dash drivers to encourage participation. Customers commonly tip Dash drivers, and the full amount is transferred directly to the driver.
According to our data, the average Dash driver earns between R14 000 and R15 000 per month and their costs are roughly R4 000 to R5 000 per month, depending on their circumstances. Thus, the average Dash driver’s net monthly earnings are in the vicinity of R9 000 to R10 000.
A further benefit afforded to Woolies Dash drivers is they are paid for the days they spend training. We also ensure they earn a minimum weekly income of R1 600 at new locations, while customer demand for Woolies Dash at these new sites is still being established.
In the unfortunate instance that a Dash driver is in an accident, they are given support, counselling, and financial assistance where required, and their contracts remain secure during their time off.
We are committed to improving the lives of everyone in the Woolies world, and we will continue to ensure our values are seen and felt across our value chain.
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