PAXI, the pickup-to-pickup parcel service PEP launched in 2018, has grown into one of South Africa’s most widely used affordable courier options for small businesses, now operating from over 2,800 collection points nationwide.
How PAXI works for small businesses
Customers or businesses drop a parcel at any participating PEP, Tekkie Town or Shoe City store, and the recipient collects it at their own chosen store using an OTP sent via SMS, with insurance and tracking included as standard. Flat-rate pricing by parcel size, rather than pricing based on distance, makes it particularly useful for small businesses shipping to customers across the country without needing to calculate delivery zones.
Why this model suits township and rural-serving businesses
Traditional courier networks have historically underserved townships and rural areas, and PAXI’s use of an existing large retail footprint solves that reach problem without requiring the infrastructure investment a dedicated courier network would need. For small businesses selling into these areas, particularly online sellers without their own delivery fleet, this remains one of the more cost-effective last-mile delivery options available.
What small businesses should still check before relying on it
Flat-rate parcel services work best for smaller, lower-value items, so businesses shipping larger or higher-value goods should compare total cost and included insurance cover against alternative courier options. Confirming current collection-point locations and any size or weight restrictions before committing to a shipping strategy avoids surprises once order volumes grow.
Frequently asked questions
What is PAXI?
A pickup-to-pickup parcel delivery service run by PEP, letting customers send and collect parcels at PEP, Tekkie Town and Shoe City stores nationwide.
How is PAXI priced?
By flat rate based on parcel size, rather than by distance, making costs predictable regardless of where a parcel is being sent within South Africa.
Why does PAXI work well for businesses serving townships and rural areas?
It uses PEP’s existing large retail footprint, reaching areas that traditional courier networks have historically underserved.
Is PAXI suitable for high-value or large items?
It’s best suited to smaller, lower-value parcels; businesses shipping bigger or pricier goods should compare it against dedicated courier options.
Does PAXI include tracking and insurance?
Yes, both are included as standard as part of the service.
Originally published in May 2018. Updated September 2026.
Small business logistics support via the Department of Trade, Industry and Competition.
Further reading
Originally published in May 2018. Updated September 2026 to confirm PAXI has grown to over 2,800 collection points nationwide, and link current last-mile delivery guidance for small businesses weighing it against dedicated courier options.
