The quick growth of e-commerce has been one of the drivers for the “24-hour delivery” or “1-hour delivery” versions provided by the distribution and supply chain industry.
Another reason for this is the advent of tech giants such as Walmart, Netflix, Uber, and Amazon which fueled the on-demand economy.
The last leg of e-commerce is last-minute delivery.
It has gained significance because it is directly responsible for fulfilment, customer satisfaction, and profitability.
Many last-mile delivery and logistics companies in Egypt and other middle east regions are taking advantage of the rapid growth of online shopping in the region.
What is last-mile delivery?
This is the last leg in all supply chains.
If you take into consideration the modern scenario such as the quick growth of e-commerce, this is the fastest-growing segment in the supply chain working in the middle east.
Last-mile delivery is a significant factor for all kinds of customer experiences both positive and negative.
This is because it is a touchpoint between the customers and the organization. The explosive growth you are seeing in the e-commerce segment has made last-mile delivery software an indispensable asset for the creation of a positive customer experience.
It is the face of the company as seen by the customers.
Top last-mile delivery systems in the middle east
For catering to the growing requirements in the e-commerce industry, several start-ups are eyeing last-mile delivery. It is a vital section of the middle east supply chain.
FODEL is one such organization that raised $2.6 million recently in Pre-Series A funding.
This organization uses proprietary technology for building a click-and-collect network.
At the moment, there are more than 1000 pick-up locations across the UAE for FODEL. They have integrated with retailers such as JollyChic and Choithrams for their operations.
According to the company resources, there is last-mile delivery tracking in real-time for their parcels.
Their customers have complete control and visibility of the shipments.
The organization has plans to expand into other countries of the middle east such as Saudi Arabia where they have already placed more than 800 pick-up places.
There are established organizations working in this segment in the middle east as well.
One good example is Aramex.
They are also trying their hand at innovation with the last-mile delivery to meet the rising e-commerce requirements in Egypt and the middle east.
Last year, for instance, Aramex introduced their innovation “Aramex Fleet” in Saudi Arabia.
This is a crowd-based delivery platform, connecting the people living in the country with the last-mile delivery system. They are helping leverage the sharing economy of the country. Aramex decided to invest in What3Words in 2016 that is a U.K.-based company.
They adopted the collaboration to fulfil their operations as a part of their last-mile delivery strategies. Aramex carried out a study in Dubai for measuring the efficiency of different deliveries to normal addresses versus those provided by What3Words.
They found that the What3Words enabled deliveries were more than 40% quicker and they also decreased the distance covered by the drivers.
Bosta was founded in 2019 in Egypt. The company is making some waves in the Egyptian local shipping markets.
Bosta not only provides an effective yet simple tracking solution, but its pricing is also pretty affordable. For documents and smaller packages, they charge a fee from 30 EGP onwards.
These prices are for delivery in several locations in Alex and Cairo. They also offer an express delivery service called Next Day Delivery.
It is a quick and convenient service that guarantees package delivery after they have received the pickup.
They have cash collection services and digital logistics solutions that are awesome for a local organization competing with huge giants in a competitive segment.
This company utilizes GPS tracking available on mobile phones for delivering the packages where the customer is located.
According to the organization sources, around 30% of the packages are not delivered because the delivery person or the driver failed to locate the customer.
Fetchr utilizes an algorithm for matching the courier with pick-up and drop-off points. The fundamental service offered by the company allows the customers to select a time slot and they provide alternatives to the clients for dropping off the package with a receptionist or some other safe place.
Their service offering called Fetchr Now is capable of picking up the customer packages in less than 45 minutes.
It is later delivered to the recipients.
Growth opportunities for last-mile delivery in the middle east
Although you might not associate the middle east countries with things such as e-commerce, innovation drives, or big investments in start-ups, there are definite signs here that indicate change.
The e-commerce market of the middle east is all set to grow by more than 15% in the upcoming years.
There will be many more players becoming operational with things becoming more competitive.
The AIM or Annual Investment Meeting, conducted by the UAE government has stated that Dubai is the biggest destination for start-ups. It is followed by other countries.
Availability of the internet and smartphones is another factor supporting the growth.
The CEP industry is also known as the Courier, Express, and Parcel industry is one of the top 3 industries in the middle east that are affected by the advancements in the field of digitization and e-commerce.
Similar to any other business, the companies partnering with last-mile-delivery companies are also facing some challenges such as,
- Fluctuations in demand patterns.
- Conservative regional policies.
- Rising operational costs.
- Longevity is a must due to rising competition.
- Everyday roadblocks in operations and other related challenges.
- Conservative policies of the region.
Most countries in the middle east are also looking to regulate the segment well.
They recently provided a framework for the utilization of robots and drones for their use in the fulfilment of deliveries and last-mile delivery problems.
Run your own last-mile delivery services with Tookan.
Thinking of managing your own fleet and fulfill deliveries? Our delivery management solution is used by companies across the Middle East and Egypt.
It offers an administrative dashboard that enables various users to track their orders in real-time and get automated notifications about different problems.
Tookan allows you to manage all the delivery operations from a single platform for enhancing the customer experience at larger scales.
With strong backing from the governments in the region, the e-commerce segment is all set to grow in the middle east.
It looks as if several countries in the middle east including Egypt are moving towards becoming a trendy place for e-commerce companies and start-ups.
There is a local preference observed for online buying and it means more deliveries and the rise of last-mile delivery logistics solutions. So, the companies working in this segment would be well-advised to keep an ear to the ground and maintain their concentration.
These companies are quite likely to be within a market that is ripe with opportunities.
Many companies are using innovations in the last-mile delivery portion of the e-commerce segment in the middle east.
If you are looking for a package that is a full solution for all your marketing requirements, look no further than Tookan. It offers many features such as real-time parcel tracking, offline sync, route optimization, geofencing, agent scheduling, agent wallet, etc.
Also Read: 10 Last-mile delivery software in 2022
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