Noha Gad

Modern commerce is witnessing a significant transformation triggered by rapid developments in technology. The traditional retail landscape, which was centered on physical stores and direct customer interactions, is evolving into a digitally interconnected ecosystem. This change was driven by emerging technologies that enhance how products are sold and redefine the overall customer experience and operational efficiency. 

Technologies such as artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) emerged as key enablers that revolutionize each aspect of modern commerce. Businesses increasingly utilize cutting-edge tools to understand and anticipate customer needs, tailor offerings, and create more engaging shopping environments. AI-driven analytics allow retailers to handle vast amounts of data, providing insights that help optimize product assortments, pricing strategies, and personalized marketing.

On the other side, VR and AR fill the gap between digital and physical worlds, offering immersive and interactive experiences for customers, ultimately enhancing logistical operations by improving warehouse management, staff training, and real-time problem-solving.

As modern commerce continues to evolve, organizations embracing these technologies are well-positioned to meet rising consumer expectations and adapt to the fast-changing market landscape effectively. Thus, understanding the importance of this technological evolution is essential for businesses to remain competitive

How AI transforms modern commerce

AI has become a cornerstone of innovation in modern commerce, driving significant improvements across customer engagement, inventory management, and operational efficiency.

-Personalization and customer insights. AI uses machine learning algorithms to analyze customer data, such as browsing behavior, purchase history, and preferences. This enables businesses to deliver personalized product recommendations and marketing messages in real time, enhancing customer satisfaction and boosting conversion rates.

-Inventory management and forecasting demand. AI models can optimize inventory levels by processing large datasets on sales trends, seasonality, and external market factors. This reduces risks of overstock or stockouts, cutting costs related to excess inventory and lost sales opportunities

-Customer experience enhancement.  AI-powered chatbots and virtual assistants provide 24/7 customer support by handling routine inquiries, guiding shoppers through product selections, and resolving common issues quickly. This ultimately contributes to enhancing customer experience and reducing response time, thereby enabling human agents to focus on more complex problems. 

-Fraud detection. AI models detect unusual patterns and potential fraud in real time by analyzing transaction data and user behavior. This capability enhances the security of digital payments and protects both merchants and customers from cyber threats.   

Using VR and AR to enhance the shopping experience 

VR and AR are transforming the shopping experience as they create immersive environments that engage customers in ways traditional retail cannot. For instance, virtual stores and showrooms allow shoppers to explore products in a fully digital space without leaving their homes. Both innovations enable virtual product try-ons and demonstrations, especially valuable in sectors like fashion, furniture, and automotive.

Additionally, VR and AR are used for remote product training and retail staff education. Retailers can simulate real-world scenarios to train employees on product knowledge, customer interaction, and store layout without disrupting physical store operations. This method improves staff preparedness and service quality, directly benefiting the shopping experience.

These innovative technologies also fill the gap between physical and online retail, making shopping more interactive, engaging, and convenient in the modern commerce landscape. They enable interactive marketing campaigns and promotions that engage customers in innovative ways.

The integration of AI, VR, and AR technologies in modern commerce has a significant impact on supply chains and logistics as they can optimize inventory and deliveries, enhance warehouse and fulfilment efficiency, promote logistics planning, and improve risk management. 

Finally, these emerging technologies are fundamentally reshaping the landscape of modern commerce, creating opportunities for businesses to innovate and deliver exceptional customer experiences. 

Beyond customer interaction, they revolutionize the operational backbone of commerce by optimizing supply chains and logistics. AI-driven analytics improve forecasting and inventory control, AR guides warehouse staff to operate more efficiently, and VR simulations help plan resilient delivery routes and workflows. Together, these innovations not only reduce costs but also enhance speed, accuracy, and flexibility in meeting consumers’ growing demands.

Looking ahead, the continued convergence of AI, VR, and AR is expected to unlock more transformative possibilities that will redefine how people discover, interact with, and purchase products.

Noha Gad

In the heart of the Middle East, Saudi Arabia is positioning itself as a global logistics hub, supported by strong government backing, extensive infrastructure development, and ongoing reforms in laws and regulations. The National Industrial Development and Logistics Program (NIDLP) aims to enhance the performance of logistics hubs and improve local, regional, and international connectivity across trade and transport networks, leveraging the Kingdom’s strategic location as the crossroad of three continents.

Tech-powered platforms like Salasa are revolutionizing traditional logistics by integrating advanced digital tools with deep market expertise, redefining speed, transparency, and operational efficiency.

As one of the leading e-commerce fulfillment platforms in Saudi Arabia, Salasa connects businesses to a sophisticated fulfillment network, turning complex logistics into seamless customer experiences.

To explore this transformation, Sharikat Mubasher interviewed Salasa’s founders, Hasan Alhazmi and Abdulmajeed Alyemni, to learn more about the platform’s business model, innovative offerings, and its role in transforming the logistics industry in Saudi Arabia.

Alhazmi, who also serves as Salasa’s CBO, shared insights into the platform’s evolution from a 3PL delivery provider to the logistics partner of choice for over 1,000 merchants, having fulfilled and shipped more than 50 million products domestically and internationally since inception.

First, what motivated you to establish Salasa? And what are the key logistics challenges that the platform addresses? 

Salasa began as a simple 3PL company delivering e-commerce orders by car and motorcycle. When one of our clients faced challenges with picking and packing, we stepped in to handle it. That light bulb moment revealed a clear opportunity: fulfillment could be offered as a dedicated service. My partner and I left our jobs at the time to build that model from the ground up.

From those first few shipments, we have grown into a network that has fulfilled over 50 million products, built on the belief that merchants should be able to scale without being weighed down by operational complexity. Today, our high-speed dark stores and mega fulfillment centers solve the exact pain points we saw in those early days: slow delivery times, fragmented courier options, and the cost burden of running in-house logistics. We combine that infrastructure with smart technology to give merchants what they need most: speed, reliability, and the ability to grow without limits.

How did Salasa enhance its products and services to transform the e-commerce logistics industry in Saudi Arabia? 

We are focused on building an infrastructure and technology ecosystem that work seamlessly together. 

On the physical side, we expanded to 15 dark stores and three mega fulfillment centers, ensuring we can reach the majority of customers in Saudi Arabia within hours, not days. 

On the technology side, we are rolling out solutions that automate courier selection, further optimize delivery routes, detect upcoming merchant campaigns, and predict inventory needs based on demand trends.

These tools will give merchants more control and visibility. No more guesswork. Merchants can track their orders in real time, anticipate stock needs, and respond to demand spikes with confidence. Over time, this combination of speed, transparency, and flexibility will raise the bar for what merchants expect from a logistics partner in the region.

How does Salasa uphold exceptional customer experience and operational excellence as it scales? 

Operational excellence at Salasa is embedded in every process we design. Our systems are built to minimize errors, cut delivery times, and ensure clear communication at every stage, with tools like voice AI proactively confirming pickups and deliveries for seamless coordination. 

As we scale, we avoid the common drop in service quality by investing heavily in technology and monitoring, staying close to the market, and listening to our customers. By identifying gaps, addressing bottlenecks, and acting quickly on feedback, we maintain the reliability merchants depend on and the on-time delivery customers expect, every single time.

For his part, Co-founder and CEO Alyemni shared more about the company’s growth strategy and his thoughts about the future of the logistics and e-commerce landscape in Saudi Arabia and the wider region. 

You successfully raised a $30 million Series B round. What motivated investors to invest in Salasa? And how will this fresh capital support your expansion plans?

Investors were drawn to Salasa because we have proven the model at scale. Salasa is not a gamble; it is a winning bet. We have built one of the fastest fulfillment networks in the region, backed by a proprietary tech stack that is actively redefining how e-commerce logistics operates. We have shown consistent growth, high merchant retention, and an ability to expand without compromising service quality.

This new capital allows us to move faster on three fronts:

*Infrastructure – expanding our network to handle higher volumes and cover more geographies.

*Technology – accelerating the development of our tech stack, from smart courier routing to predictive inventory positioning and automated merchant workflows.

*Talent – bringing in specialized expertise to strengthen our capabilities in operations, technology, and market expansion.

The goal is simple: to scale without losing the precision and quality that define Salasa today.

What are the new markets or segments that Salasa targets as part of its growth strategy? 

We are pursuing growth in three main ways: 

First, by deepening our presence in Saudi Arabia, reaching merchants in every major city, and scaling infrastructure to handle growing order volumes.

Second, by expanding into select GCC markets where there is clear demand for tech-enabled fulfillment.

Third, by enabling cross-border trade (inbound and outbound), which allows local sellers to seamlessly reach customers in new international markets, while also enabling global brands to enter Saudi Arabia with faster, more cost-effective delivery.

Beyond geography, we are also broadening our service offering, monetizing our proprietary Order Management System (OMS), and introducing adjacent solutions like omni-channel inventory management, AI-powered product content optimization, and campaign recommendations. These expansions position Salasa to serve merchants end-to-end, whether their customers are across the city or across borders.

How do you see the logistics and e-commerce fulfillment landscape in Saudi Arabia and the broader GCC region? 

Logistics in the region is moving away from fragmented, courier-led models to integrated fulfillment. Strong economic growth and major infrastructure investments are accelerating that shift. With E-commerce trade surging, Saudi Arabia alone sees over 250 million shipments a year, and higher incomes and connectivity will push that number higher.

Merchants are also changing how they operate, focusing on building their brands and products, while leaving logistics to specialized, tech-driven partners like Salasa. This shift is raising the bar for speed, reliability, and visibility, turning logistics from a challenge into a competitive advantage.

In your opinion, what are the key trends and innovations that shape the Saudi logistics sector? And how can cloud-powered and data-driven technology transform this promising sector? 

There are three major trends shaping the sector right now. First is the rise of instant delivery. Same-day and even two-hour windows are becoming more common in urban centers. Second is the growth of cross-border e-commerce, which brings both opportunities and operational complexity. Third is the deeper integration of AI and automation into every logistics function.

Cloud-powered and data-driven systems are the enablers here. They let us unify operations that were once fragmented, including warehousing, courier management, and inventory positioning, and run them as a single, intelligent network. When you layer in AI, you can anticipate demand, route orders in the most cost- and time-efficient way, and even optimize how merchants present their products online. This is how logistics moves from being a cost center to being a driver of growth.

Noha Gad 

The e-commerce sector in Saudi Arabia has witnessed rapid and transformative growth over the past years, backed by government policies and reforms, rising internet penetration, and the increasing demand for online shopping and electronic payments. According to recent figures by the Small and Medium Enterprises General Authority (Monsha’at), the total number of active e-commerce registrations recorded 41,322 by the end of the first quarter (Q1) of 2025, marking a 6% year-on-year (YoY) increase.

The e-commerce sector emerged as a key pillar of the Saudi Vision 2030’s goals of enhancing the national economy and reinforcing the Kingdom’s position among the world’s top 10 countries leading e-commerce growth. The total number of existing e-commerce registrations surpassed 39,300 in Q2-15, according to the latest report released by the Ministry of Commerce.

The e-commerce market in Saudi Arabia is projected to reach $24.1 billion in 2029, with a compound annual growth rate (CAGR) of 9.91% during the period from 2025 to 2029, according to Statista, the global data and business intelligence platform. Another report published on the Research and Markets platform, the world’s largest market research store, expected this promising sector to hit $689 billion by the end of 2033, with a CAGR of 12.1% from 2025-2033.

As consumers are shifting towards online shopping due to convenience and competitive pricing, dropshipping has emerged as a cost-effective and scalable business model that enables businesses, notably small and medium-sized enterprises (SMEs), to enter the market.

What is dropshipping?

Dropshipping, or direct shipping, is a fulfillment model that allows entrepreneurs and e-commerce businesses to outsource the processes of procuring, storing, and shipping products to a third party, typically a supplier. This fulfillment model commonly appeals to entrepreneurs seeking efficiency and low overhead. It enables the retailer to forward the order details to a third-party supplier, such as a manufacturer, wholesaler, or distributor, who then handles the packaging and ships the product directly to the customer. This means that the retailer acts as a middleman, selling products without ever physically handling them.

Traditionally, retailers need to buy products in bulk, store them, and take care of shipping logistics, which requires significant capital and operational resources. Dropshipping removes these barriers by allowing online sellers to focus primarily on marketing and customer service while the supplier manages fulfillment.

How to start your dropshipping business in Saudi Arabia?

The very first step to start your dropshipping business is to choose the products you want to sell in your online store. You can select products from a supplier or a manufacturer, based on your niche and target audience.

Company formation and commercial registrations. In this step, you have to obtain your commercial registration (CR) and select the correct legal structure, whether it is a sole proprietorship, LLC, or an establishment. You must also register your business with the Zakat, Tax, and Customs Authority (ZATCA) for VAT compliance. 

To set up your online store or platform, you have to conduct a comprehensive feasibility study and market research to assess demand trends for your product niches in the Saudi market, competition benchmarks and pricing analysis, customer segmentation and social media targeting, fulfillment timelines, and supplier reliability, in addition to profitability projections under different growth scenarios.

After obtaining all required documents and finishing the market research, you have to find a reliable supplier to get quality products at competitive prices. Now, you can list products on your online store, using product descriptions and images provided by the supplier to create product listings. You will need to integrate local payment gateways, such as SDAD, Mada, and other popular payment solutions in Saudi Arabia, into your platform 

Pros and Cons of a dropshipping business

The dropshipping business model offers various benefits for entrepreneurs, notably:

• Overhead costs: You do not need a huge capital to start. Dropshipping has the potential to lower overhead costs, including maintaining a storage facility or sending products to customers. 
• Starting costs: Entrepreneurs looking to start a business with minimal investment choose dropshipping as they do not need to invest in facilities or resources to process orders.
• Reduced risks: dropshipping offers less risk of losing money due to lost merchandise or over-ordering products since the stock is kept at the suppliers’ warehouse.
• Operating location: You can fulfill orders regardless of your operating location, opening up a possibility to work from anywhere.
• Product variety: Dropshipping enables you to sell a broad range of items and increase your earning potential.
• Flexibility and scalability: this business model allows you to test different goods to see what sells best, without worrying about losing your investment. It also enables you to accept more orders without increasing the inventory you store, package, and ship.

Although the dropshipping model provides various benefits, it comes with several disadvantages, including:

• Limited control over product quality, which may lead to poor customer satisfaction.
• High competition and market saturation make it difficult to maintain profit margins.
• Heavy reliance on suppliers for inventory availability, fulfillment, and accuracy.
• Challenges in managing returns and refunds, especially with multiple or international suppliers

With key players such as Salla, Zid, and Dukakeen, the dropshipping business model can boost the e-commerce industry in Saudi Arabia through multiple mechanisms. This includes reducing entry barriers for entrepreneurs, increasing product variety, and supporting scalability, capitalizing on the Kingdom’s massive investment in digital infrastructure and entrepreneurship.

Finally, the emergence of the dropshipping model further highlights the flexibility and inclusiveness of the Saudi e-commerce sector. By enabling businesses of all sizes to reach customers efficiently, it helps diversify product offerings and accelerates market entry, reinforcing the Kingdom’s role as a leader in e-commerce transformation. Although this model presents operational challenges, its capacity to foster entrepreneurship and lower barriers makes it integral to Saudi Arabia’s ambitious plans for development and digital progress.

Looking ahead, continued advancement in payment infrastructure, logistics, and technology will only serve to strengthen the Kingdom’s competitive edge in global e-commerce.

Ghada Ismail

If you’ve ever clicked that “return item” button after buying something online, you’ve already taken part in reverse logistics, even if you didn’t know the term existed.
For startups in Saudi Arabia and across the MENA region, this behind-the-scenes process isn’t just a technical detail. It’s quietly shaping customer loyalty, cutting costs, and even opening up fresh revenue streams.

So, What Exactly Is Reverse Logistics?

Think of it as the product’s journey home.
It’s what happens when goods travel from the customer back to you, for a refund, a repair, recycling, or proper disposal. Forward logistics moves products toward customers; reverse logistics does the opposite.

And in Saudi Arabia’s booming e-commerce scene — forecast to exceed SAR 50 billion by 2025 — returns are on the rise. Globally, between 15%–30% of online purchases get sent back. Our region is no different. For a young business, ignoring reverse logistics is like running a store with no door for customers to walk back in.

Why Startups Should Care

1. Winning Repeat Customers
Shoppers here expect convenience. If returning a product is quick and painless, they’ll come back. In a market where it costs a lot to win a customer, it makes sense to keep them.

2. Avoiding Operational Chaos
Without a plan, returns can become a nightmare between rushed pickups, lost items, and confused inventory systems. The earlier you set up a clear process, the fewer headaches later.

3. Saving Money and Going Green
Not every return is a loss. Many items can be refurbished, resold, or recycled. With Saudi Arabia’s Vision 2030 pushing sustainability, turning returns into a green initiative can pay off in more ways than one.

4. Learning from Every Return
Returns tell you a story: maybe a size runs small, maybe the packaging is weak, maybe delivery was too slow. Each one is a clue for improving your product and your service.

Making Reverse Logistics Work for You

• Team up with third-party logistics (3PL) providers: like Aramex, SMSA, or regional fulfillment startups offering returns as part of their package.
• Use tech:  apps like Fetchr or Quiqup make it easy to track returns, print labels, and keep customers updated.
• Be transparent: a clear, friendly returns policy on your website builds trust instantly.

A Saudi Success Story

One local example is Cartlow, a Riyadh-based re-commerce platform. Cartlow specializes in returned, overstock, and refurbished products, turning what could be waste into a profitable business.
By building reverse logistics into their model from day one, they’ve managed to partner with major retailers, process high volumes of returns efficiently, and resell items at discounted rates. Not only does this reduce landfill waste, but it also taps into a growing market of value-conscious shoppers. 

Wrapping things up…

Reverse logistics isn’t just an operational chore; it’s rather a powerful growth strategy. For startups in Saudi Arabia and the MENA region, nailing it early means happier customers, lower costs, and a stronger brand.
Because in business, just like in life, sometimes the way back is just as important as the way forward.

Noha Gad 

The food and beverage (F&B) sector represents a key pillar in Saudi Arabia’s journey towards economic diversification and sustainable growth. This promising industry has witnessed a significant expansion with technology being a catalyst for seismic changes in the sector amid shifting market dynamics and evolving consumer demands.

A recent report by AstroLabs, the leading business expansion platform in MENA, revealed that the market value of the Saudi F&B industry reached $45 billion in 2024, presenting lucrative business opportunities across its segments and subsegments. The same report anticipated consumer spending on food services to rise by 6% annually over the next five years, while the food delivery market is projected to surge to $14.9 billion by 2028.

Technology has profoundly transformed every stage of the food value chain, from using advanced agricultural technologies that enhance farming and enable controlled environment agriculture, to shaping how food is accessed, prepared, and enjoyed. Integrating IoT and blockchain also enhanced supply chain transparency, food safety, and traceability, building greater consumer trust and reducing inefficiencies throughout the sector.

This synergy between tradition and modernity not only preserves Saudi Arabia’s culinary heritage but also ensures that technology remains at the heart of future growth, delivering resilient, sustainable, and world-class food systems for generations to come.

Another report by the global business consulting firm, Grand View Research, unveiled that the food technology (foodtech) market in Saudi Arabia is expected to reach $10.2 million by 2030, marking a compound annual growth rate (CAGR) of 10.5%.

Additionally, the latest report by the Saudi Central Bank (SAMA) highlighted that the point-of-sale (PoS) sales in the F&B sector surpassed SAR 165.7 billion during the second quarter (Q2) of 2025, backed by a humble increase in the number of transactions, which reached over 2.7 billion.

Critical things to consider for establishing a strong presence in the Saudi F&B sector

• Testing the market first and prioritizing omnichannel retail. Companies that aspire to expand into Saudi Arabia must test their products in the market before making large investments. Also, omnichannel retail involving online and offline sales has become an important mainstay in the Saudi retail sector, while the growth of younger consumers has resulted in a shift from traditional trade to modern trade. 
• Obtaining Halal certifications and forging partnerships with local players. Halal certification is necessary for food brands to gain a foothold in this market. They need to ensure compliance with Saudi Food and Drug Authority (SFDA) regulations.
• Utilizing logistics and temperature-controlled delivery hubs to ensure products remain fresh.

The Saudi foodtech landscape is bustling with innovations and investment, with several startups leading the charge, notably Nana, the dark store grocery delivery startup and a key player in the digital shopping solutions sector; Foodics, the leading cloud-based technology and payments platform for restaurants; iyris, the innovative agriclimate tech company specializing in advancing commercial farming; Mr. Mandoob, a state-of-the-art delivery platform that connects consumers with various dark stores, and more. 

Key innovations that transform the F&B sector in Saudi Arabia 

Cloud Kitchens 

The cloud kitchen business is transforming the food service industry in Saudi Arabia, providing a unique blend of convenience and innovation to meet the evolving demands of consumers. Cloud kitchens, or virtual kitchens, operate exclusively for delivery orders without dine-in options, offering a cost-effective alternative to traditional restaurants. This model allows food entrepreneurs and established restaurant chains to launch multiple brands from a single kitchen space.

The boom in the cloud kitchen industry was driven by high demand for delivery services, notably during the COVID-19 pandemic, lower operational costs, flexible operations, and the emergence of e-commerce and delivery platforms, such as Jahez, HungerStation, and Talabat.

According to a survey conducted by Qoot, a subsidiary of management consulting firm Mukatafa, 44% of respondents believe that cloud kitchen businesses have lower operational costs than a normal restaurant. However, 56% said they saw fewer sales than a normal restaurant business, with only 17% reporting more sales.

The cloud kitchen market in Saudi Arabia is expected to hit $335.7 million by 2030, growing at a CAGR of 7.7% from 2021 to 2030, as stated by Al Taasis, a leading business incorporation and on-the-ground corporate solutions specialist.

Over the next five years, Saudi Arabia is anticipated to become one of the leading markets for cloud kitchens in the region, backed by urbanization, government support for entrepreneurship, and a growing appetite for digital services.

Establishing a cloud kitchen business offers various advantages, including the flexibility in menu changes, reduced financial burden, operational efficiency, and direct access to customer insights.

Subscription Meal Services

The subscription meal services industry in Saudi Arabia is gaining momentum as consumers increasingly seek convenient, healthy, and personalized dining options. This service offers customers the ability to subscribe to meal plans that deliver ready-to-eat or easy-to-prepare meals regularly, catering to varying dietary needs and preferences. 

The rising awareness of nutrition and wellness, urban lifestyles that limit time for cooking, and the integration of digital platforms that enhance user experience have accelerated the growth of subscription meal services in the Kingdom.

The ‘KSA Subscription-based Meals Market Research’ report, published by MarkNtel, stated that the subscription-based meals market in Saudi Arabia reached $254 million in 2024, and is expected to hit $383.5 million by 2030, with a CAGR of around 7.11% during 2025-2030.

Figures released by the global data and business intelligence platform, Statista, revealed that revenue in the Saudi meal delivery market is projected to surpass $10 billion in 2025 to reach $11.7 billion by 2030.

Calo is one of the key players that revolutionizes personalized meal subscriptions in Saudi Arabia. In 2024, it delivered 10 million meals across the GCC, reinforcing growing demand for data-driven, personalized nutrition.  

Other Saudi subscription meals platforms, such as Freshhouse, Right Bite, and Dailymealz, allow users to update their meal plans, pause or skip deliveries, and provide feedback, creating a highly user-centric experience. They provide consumers flexibility in meal selections, customizable menus, and streamlined delivery schedules, making it easier for them to maintain consistent healthy eating habits.  

AI-Powered Food Applications

Technology is a game-changer in the online food delivery market in Saudi Arabia. Platforms invest heavily in new tools that make things easier for users and run their operations better. They also utilize artificial intelligence (AI) and data to tailor their services, predict consumer preferences, and find the best routes for delivery. A recent report published by IMARC Group stated that the online food delivery market in Saudi Arabia is expected to record $5.71 billion by 2033, marking a CAGR of 13.6 during 2025-2033.

The AI-powered food applications in Saudi Arabia operate within a rapidly growing multi-billion-dollar online food delivery market, backed by high-tech infrastructure, a high internet penetration rate (99%), a large base of digital consumers, and heavy use of AI for personalization, logistics, and operational efficiency

Finally, the emergence of a digital food landscape has created opportunities for new delivery systems. The ongoing digitization of the food delivery space reflects a dynamic scene with potential shifts and increased business activities, contributing to the development of the Saudi tech sector and the realization of Vision 2030’s objective of localizing 85% of its food industry by 2030. 

Noha Gad

The substantial growth in the e-commerce sector over the past few years has revolutionized the retail landscape, powered by a surge in global online shoppers and evolving consumer expectations. In 2025, the number of online shoppers across the world is expected to reach around 2.77 billion, representing almost one-third of the global population, according to recent data released by SellersCommerce, a leading global B2B platform transforming the e-commerce landscape. 

This rapid expansion is triggered by increasing internet penetration, mobile commerce adoption, and the convenience offered by digital platforms. Consumers now demand faster, more flexible, and reliable delivery options, raising the bar for companies to optimize their last-mile delivery processes.

The term ‘last-mile delivery’ refers to the final stage in the supply chain where goods travel from a warehouse or local distribution center to the end customer’s doorstep, business, or a parcel locker. Although last-mile delivery is the shortest leg of a product’s journey, it is the most complex and expensive part of the logistics process, accounting for over half of total shipping costs. This phase directly links brands to consumers, serving as the ultimate touchpoint in fulfilling customer orders.

The rise in e-commerce and on-demand services highlighted the importance of last-mile delivery in meeting customers’ expectations to receive their packages safely with remarkable speed and flexibility. Same-day and next-day delivery options have become standard expectations, pushing businesses to innovate and optimize this phase of logistics. Thus, last-mile delivery is no longer just about moving parcels but about delivering superior customer experience and satisfaction.

Last-mile delivery requires careful route optimization, multiple stops, and flexible scheduling to meet strict delivery deadlines, especially in crowded urban environments. With growing expectations for transparency, customers now demand real-time tracking and prompt notifications, adding pressure on carriers and logistics providers. Successfully navigating these operational complexities can set companies apart in a competitive landscape and build lasting customer loyalty.

The evolution in last-mile delivery

The last-mile delivery landscape saw a remarkable evolution, driven by the shift from simple, manual processes to highly sophisticated, technology-driven operations. In the past, deliveries were largely managed through routine routes and fixed schedules, but today, last-mile delivery has transformed into a dynamic, customer-focused process that leverages data analytics, automation, and smart logistics solutions to optimize every step of the journey.

Emerging technologies played a pivotal role in enabling this shift. Real-time tracking systems, route optimization software, and mobile applications empowered delivery teams with the tools to plan more efficient routes, reduce fuel consumption, and proactively communicate with customers. Additionally, data analytics provides crucial insights into delivery patterns, resource allocation, and customer preferences, allowing companies to enhance their operations for maximum efficiency. 

These technological developments raised customers' expectations for last-mile delivery as shoppers prioritize speed and convenience, with same-day and even one-hour deliveries becoming standard in many markets. 

Outsourcing last-mile delivery became a strategic priority for many businesses aiming to meet the rising demands of today’s fast-paced and competitive market. By outsourcing last-mile delivery, companies mainly rely on specialized third-party logistics (3PL) providers to handle the critical final stage of the supply chain, instead of managing their own fleets and delivery personnel.

This shift enables businesses to scale operations efficiently without incurring the heavy costs of fleet ownership and management. It also enhances customer experience by providing more localized and flexible delivery options.

Key innovations in last-mile delivery

• Electric and autonomous delivery vehicles. This innovation is ideal in urban locations with frequent stops and short distances. It contributes to reducing carbon emissions, noise pollution, and operational costs. Leveraging AI, GPS, and sensors, autonomous delivery vehicles can navigate complex environments and operate 24/7. Despite these promising benefits, challenges remain in regulatory approval, cybersecurity, and infrastructure adaptation.
• Drone Delivery. This solution rapidly emerged as a transformative power in last-mile logistics as it offers unparalleled speed and flexibility in reaching customers, especially in congested urban centers and remote areas. This ability makes drones ideal for urgent deliveries such as medical supplies, food, and small parcels, where speed is critical. Electric-powered drones produce zero emissions and reduce road congestion, enabling direct deliveries to homes or designated drone ports, supporting sustainable urban logistics. One of the key challenges that delivery drones face is payload and flight range limitations that restrict package size and delivery distance.

Overall, last-mile delivery acts as a critical bridge in the logistics chain, connecting the complex global supply network to individual consumer experiences. Its evolving role requires continuous innovation to meet customer expectations for fast, reliable, and sustainable delivery. Mastering last-mile delivery is not just about moving parcels faster; it’s about crafting exceptional delivery experiences that build trust, loyalty, and a greener future in an ever-connected digital marketplace.

Kholoud Hussein 

In the rapidly evolving landscape of online retail, two models have emerged as dominant forces: traditional e-commerce and the newer, faster q-commerce. While both operate within the digital marketplace, they cater to different consumer needs and expectations. Understanding the distinctions between these models is crucial for businesses aiming to optimize their strategies and for consumers seeking the most suitable shopping experiences.

Understanding E-Commerce

E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. This model has revolutionized retail by offering consumers the convenience of shopping from anywhere at any time. E-commerce platforms typically provide a vast selection of products, ranging from electronics and clothing to home goods and more. Delivery times can vary, often taking several days, depending on factors like location and shipping options.

Introducing Q-Commerce

Q-commerce, or quick commerce, represents a subset of e-commerce that focuses on ultra-fast delivery, often within minutes to a few hours. This model has gained traction with the rise of mobile technology and the increasing demand for immediate gratification. Q-commerce is particularly prevalent in urban areas, where dense populations and infrastructure support rapid delivery services. Products commonly offered include groceries, personal care items, and other daily essentials.

Key Differences Between E-Commerce and Q-Commerce

1. Delivery Speed: The most significant distinction lies in delivery times. E-commerce typically involves standard shipping durations, ranging from a few days to a week. In contrast, q-commerce emphasizes speed, aiming to fulfill orders within an hour or less, catering to consumers' desire for instant access to products.
2. Product Range: E-commerce platforms often boast extensive product catalogs, offering a wide array of items across various categories. Q-commerce, however, focuses on a curated selection of high-demand, essential products that can be delivered quickly, such as groceries and household necessities.
3. Operational Infrastructure: E-commerce relies on large warehouses and a broad logistics network to manage inventory and fulfill orders. Q-commerce utilizes smaller, strategically located fulfillment centers, often called "dark stores," to facilitate rapid delivery within specific geographic areas.
4. Consumer Behavior: Shopping patterns differ between the two models. E-commerce purchases are often planned, with consumers taking time to compare products and prices. Q-commerce caters to impulse buying and urgent needs, providing a solution for last-minute purchases.
5. Technology Utilization: Both models leverage technology, but q-commerce heavily depends on real-time data, GPS tracking, and mobile applications to coordinate swift deliveries and manage inventory efficiently.

Market Trends and Statistics

The q-commerce sector has experienced significant growth, driven by changing consumer behaviors and technological advancements. For instance, the global q-commerce market was valued at $25 billion in 2021 and is projected to reach $72 billion by 2025, reflecting a compound annual growth rate (CAGR) of 29%. This surge is attributed to the increasing demand for convenience and the proliferation of smartphones and internet connectivity.

Business Implications

For businesses, choosing between e-commerce and q-commerce models depends on various factors, including target audience, product type, and operational capabilities. E-commerce is suitable for companies offering a broad range of products and targeting a wide geographic area. Q-commerce is ideal for businesses focusing on essential goods and serving densely populated urban centers where rapid delivery is feasible.

Finally, both e-commerce and q-commerce have transformed the retail landscape, each offering unique advantages tailored to different consumer needs. E-commerce provides variety and accessibility, while q-commerce delivers speed and convenience. As consumer expectations continue to evolve, businesses must adapt by integrating elements of both models to remain competitive and meet the diverse demands of the modern shopper.

Kholoud Hussein 

In the rapidly evolving digital marketplace, e-commerce startups are emerging as formidable players, reshaping consumer habits and retail landscapes. Central to their success is the intricate web of logistics and supply chain management, which ensures that products move seamlessly from manufacturers to consumers' doorsteps. This blog delves into the pivotal role that efficient logistics and supply chain operations play in empowering e-commerce startups, bolstered by industry statistics and insights from business leaders.

The Backbone of E-Commerce: Logistics and Supply Chain

Logistics and supply chain management encompass the end-to-end coordination of goods, from production to delivery. For e-commerce startups, this involves warehousing, inventory management, order processing, and last-mile delivery. An optimized supply chain reduces operational costs and enhances customer satisfaction—a critical factor in the competitive online retail space.

As Frederick W. Smith, Founder and CEO of FedEx, aptly stated: "Logistics is the art of making sure the right thing is in the right place at the right time." 

Market Growth and Economic Impact

The e-commerce logistics sector has witnessed exponential growth in recent years. In 2022, the global e-commerce logistics market was valued at approximately $315.82 billion and is projected to reach $1,526.42 billion by 2030, growing at a compound annual growth rate (CAGR) of 22.3%. 

This surge is driven by increasing online shopping trends, technological advancements, and the expansion of e-commerce platforms into new markets. For startups, this presents both opportunities and challenges: the potential for rapid growth exists alongside the necessity for robust logistics solutions to meet escalating consumer demands.

Challenges Faced by E-Commerce Startups

Despite the promising landscape, e-commerce startups encounter several logistics and supply chain challenges:

1. Last-Mile Delivery: The final leg of delivery is often the most complex and costly, accounting for nearly 90% of total order fulfillment costs. 
2. Inventory Management: Balancing stock levels to meet demand without overburdening storage facilities requires precise forecasting and real-time tracking.
3. International Shipping: Navigating customs regulations, tariffs, and longer transit times can complicate cross-border e-commerce.
4. Technological Integration: Implementing advanced systems for tracking, automation, and data analytics demands significant investment and expertise.

Jeff Bezos, Founder of Amazon, highlighted the importance of innovation in overcoming constraints: "I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out." 

Strategies for Optimizing Logistics and Supply Chain

To navigate these challenges, e-commerce startups can adopt several strategies:

1. Leveraging Technology

Embracing technological solutions such as Artificial Intelligence (AI), Machine Learning (ML), and Internet of Things (IoT) devices can enhance supply chain visibility and efficiency. These tools enable predictive analytics for demand forecasting, automated inventory management, and real-time tracking of shipments.

As Dave Waters, a supply chain expert, noted:

"Artificial Intelligence will be rampant in the digital supply chain.

2. Building Strategic Partnerships

Collaborating with third-party logistics providers (3PLs) allows startups to scale operations without the overhead of managing warehousing and transportation in-house. These partnerships can offer flexible solutions tailored to the startup's growth stage and market demands.

3. Focusing on Sustainability

Consumers are increasingly prioritizing environmentally friendly practices. Implementing green logistics—such as optimizing delivery routes to reduce carbon emissions and adopting eco-friendly packaging—can enhance a brand's reputation and foster customer loyalty.

4. Enhancing Last-Mile Delivery

Innovations such as drone deliveries, local distribution centers, and crowd-sourced delivery models can help mitigate the complexities of last-mile logistics, ensuring faster and more cost-effective deliveries.

To conclude, in the dynamic realm of e-commerce, startups must recognize that efficient logistics and supply chain management are not mere operational components but foundational pillars of success. By leveraging technology, forming strategic partnerships, prioritizing sustainability, and innovating in last-mile delivery, e-commerce startups can navigate the complexities of the digital marketplace.

As the e-commerce logistics market continues its upward trajectory, startups equipped with agile and robust supply chain strategies will be poised to thrive, delivering value to consumers and carving out significant market share in the process.

Ghada Ismail

We know by heart how a business trip can feel like piecing together a complex puzzle. With flights to book, accommodations to arrange, meetings to schedule, and budgets to manage, it’s easy to get overwhelmed. Luckily, the digital age offers an arsenal of tools to simplify the process and keep you focused on your objectives. As the final episode in our series on how business travel fuels SME success, we’ve compiled a list of the most effective apps to help you plan, organize, and execute your trips seamlessly.

a. Booking and Accommodation Apps

• Hopper: This app predicts flight and hotel prices with impressive accuracy, helping you book at the best time to save money.
• Airbnb for Work: With options tailored to business travelers, this app offers unique accommodations that feel like home while providing workspace essentials.
• HotelTonight: Ideal for last-minute trips, this app finds discounted rates on same-day hotel bookings.

b. Travel Itinerary Management

• TripIt: Automatically consolidates all your travel details in one place—flights, hotels, car rentals, and more. It’s your go-to travel assistant.
• Google Travel: Syncs with your email to organize itineraries and offers recommendations for your destination.

c. Expense Tracking and Budgeting

• Expensify: Snap photos of receipts, track expenses, and generate detailed reports for reimbursement or record-keeping.
• Splitwise: Perfect for team travel, this app simplifies expense sharing and ensures everyone’s on the same page.

d. Communication and Productivity

• Zoom: Essential for virtual meetings if you need to connect with your team or clients while on the go.
• Slack: Stay in touch with your team, share files, and collaborate seamlessly, no matter where you are.
• Google Workspace: From Docs to Sheets, this suite ensures you can access and edit your work anytime.

e. Local Navigation and Transportation

• Google Maps: Offers reliable navigation, live traffic updates, and public transport options.
• Citymapper: A must-have for urban travel, this app provides detailed transit information and alternative routes.
• Uber: Dependable for rides in most major cities worldwide.

f. Language and Culture Assistance

• Duolingo: Brush up on essential phrases before arriving at your destination.
• Google Translate: Break language barriers by translating text, speech, and even images in real-time.
• Culture Trip: Get insights into local customs, attractions, and dining recommendations.

g. Health and Safety

• MySOS: A health app that helps you locate medical services quickly.
• Sitata: Provides travel safety alerts, identifies health risks, and offers tips to stay safe abroad.

One last word..

As we close this series, it’s clear that the right apps can turn business travel from a source of stress into an opportunity to excel. With tools that help you book flights, manage expenses, and navigate new destinations, you’re equipped to make the most of every trip. This final episode is a reminder that preparation and smart choices are key to success on the road.

As you gear up for your next trip, try incorporating some of these apps into your routine. They’ll not only make your travel experience smoother but also help you stay one step ahead, no matter where your business journey takes you.

Ghada Ismail

Business travel has long been a vital driver of growth, connectivity, and collaboration across industries worldwide. Though often viewed simply as a logistical necessity, its impact extends far beyond the surface. This episode of How Business Travel Fuels SME Success explores how business travel fosters innovation, strengthens partnerships, and fuels economic growth across various sectors, pinpointing which industries benefit most from these opportunities.

Business Travel in Tech: Building Global Connections

In the technology sector, where rapid innovation and collaboration are key to success, business travel plays an indispensable role. Both startups and established tech companies rely on in-person meetings to secure funding, forge partnerships, and explore untapped markets. For example, a fintech startup attending an international conference could connect with potential investors or partners, gaining access to resources that fast-track their global expansion. Whether attending summits, expos, or strategic meetings, business travel enables companies to build the relationships necessary for long-term growth and global competitiveness.

Manufacturing and Supply Chains: Optimizing Operations

For the manufacturing sector, business travel is essential for maintaining operational efficiency and optimizing supply chains. Visiting factories, meeting with suppliers, and overseeing production processes in person allow businesses to address issues in real-time and ensure quality control. Companies that prioritize travel often experience better cost efficiencies, stronger supplier relationships, and smoother operations.

Creative Industries: Building Networks and Inspiration

In creative sectors such as media, design, and entertainment, business travel serves as a catalyst for inspiration and collaboration. Industry events like film festivals or design expos allow professionals to network, exchange ideas, and showcase their work globally. These interactions open doors to new opportunities and contribute to a more dynamic and thriving creative ecosystem.

Professional Services: Strengthening Client Relationships

For professional services, including consulting, legal, and financial firms, business travel is key to building trust and maintaining strong client relationships. In-person meetings, workshops, and site visits help companies better understand client needs and deliver customized solutions. Firms that invest in travel often see improved client satisfaction and retention rates.

Hospitality and Tourism: Fueling Economic Growth

The hospitality and tourism sectors are perhaps the most directly connected to business travel. Conferences, trade shows, and corporate events bring a constant stream of business travelers, boosting local economies and creating jobs. Additionally, the overlap between business and leisure travel amplifies the economic impact, benefiting the broader tourism industry.

Who Benefits the Most?

While all sectors gain from business travel, those driven by relationship-building, innovation, and operational oversight see the most significant returns. SMEs, in particular, can leverage business travel to expand their networks, access new markets, and enhance their competitive edge. Regions that position themselves as business travel hubs also reap substantial economic benefits from the influx of visitors and associated spending.

Adapting to a Changing Landscape

The COVID-19 pandemic reshaped business travel, introducing new challenges and opportunities. Hybrid models that blend virtual and in-person interactions have become the norm. Nevertheless, the enduring value of face-to-face meetings remains evident. Companies that strike a balance between the advantages of in-person engagement and the efficiencies of digital tools are poised for success in this new landscape.

Wrapping things up…

Business travel remains a powerful engine of growth across industries. It fosters collaboration, drives innovation, and connects individuals in ways that digital alternatives cannot fully replicate. By strategically leveraging business travel, companies can unlock new opportunities and solidify their position in an increasingly interconnected world.

Stay tuned for the next episode, where we will explore actionable strategies for optimizing business travel and maximizing the value of every journey.

Ghada Ismail

For small and medium-sized enterprises (SMEs), business travel isn’t just about getting from point A to point B—it’s a doorway to opportunity. It’s the handshake that seals a deal, the visit that builds trust, and the conference that sparks new ideas. But let’s face it: travel can also be stressful, expensive, and downright exhausting. From tight budgets to packed schedules, SMEs often face hurdles that can make even the most promising trip feel like an uphill climb. In this episode, we’ll explore these challenges and uncover practical strategies to help SMEs make every journey worthwhile, productive, and rewarding.

Common Challenges SMEs Face in Business Travel

1. Budget Constraints
   Unlike larger corporations, SMEs often lack the financial leeway to absorb fluctuating travel costs. Airfares, accommodation, and unforeseen expenses can quickly strain limited budgets.
2. Time Management
   SME teams are often lean, meaning that every employee's time is critical. Frequent travel can disrupt daily operations and create bottlenecks.
3. Compliance and Policy Gaps
   Many SMEs operate without a formal travel policy, leading to inconsistent booking practices and difficulty managing expenses.
4. Employee Burnout
   Frequent travel can take a toll on employees, especially when trips are poorly planned, lack flexibility, or do not allow for adequate rest.
5. Limited Access to Resources
   SMEs may struggle to access the same discounts or perks that larger companies secure through volume-based agreements with airlines, hotels, or travel agencies.

Strategies for Optimizing Business Travel

1. Establish a Clear Travel Policy
   A well-defined travel policy can standardize booking processes, set expense limits, and encourage cost-effective choices. Include guidelines on preferred vendors, reimbursement procedures, and sustainability practices.
2. Leverage Technology
   Travel management platforms can simplify booking, track expenses in real time, and provide access to competitive rates. Tools like mobile apps also help employees stay organized on the go.
3. Plan Strategically
   Consolidate travel itineraries to minimize trips, schedule meetings back-to-back where possible, and book in advance to secure better deals. Evaluate the necessity of travel versus virtual alternatives.
4. Negotiate Vendor Partnerships
   Partnering with airlines, hotels, or rental services can yield discounts even for smaller businesses. Look into loyalty programs and industry-specific group rates.
5. Prioritize Employee Well-Being
   Ensure travel schedules allow for rest and recovery, and provide flexible options where feasible. Offer perks like lounge access or upgraded accommodations for longer trips.
6. Monitor and Optimize Spend
   Regularly review travel expenses to identify trends and opportunities for savings. Use analytics to track compliance with policies and ROI from trips.

To wrap things up

Optimizing business travel isn’t just about cutting costs; it’s about finding balance. SMEs that take a strategic, employee-focused approach can turn challenges into opportunities, ensuring that every trip contributes to their growth story. With the right tools, policies, and mindset, SMEs can navigate the complexities of business travel with confidence and purpose.

Stay tuned for the next episode in our series, where we explore the role of business travel across sectors and identify who benefits most.

Ghada Ismail

Scaling up is a pivotal stage for any startup. Growth accelerates, operations expand, and the stakes are higher than ever. At this stage, strategic partnerships can act as powerful catalysts, unlocking new markets, increasing operational efficiency, and enhancing brand credibility. This episode will explore the types of partnerships that startups should consider during scaling, along with actionable advice for forming and managing these alliances.

Why Partnerships Matter in the Scaling-Up Stage?

Scaling up isn’t just about doing more of the same; it’s about doing things smarter and more efficiently. Strategic partnerships help startups:

Access New Markets: Leverage established networks to reach untapped audiences.

Improve Operational Efficiency: Streamline processes and reduce costs with the help of experienced partners.

Enhance Credibility: Collaborations with well-known brands build trust among customers, investors, and stakeholders.

Accelerate Innovation: Gain access to technology or expertise that drives growth.

You should know that the scaling-stage partnerships require a long-term mindset, so you have to choose partners who align with your vision and can grow with you.

Types of Partnerships for Scaling Up

Distribution Partnerships: Partner with companies that can help you scale by expanding your reach.

What They Bring: Established customer bases, retail networks, or online platforms.

Example: A Saudi startup in the F&B sector partnering with a regional supermarket chain to distribute products across the GCC.

B. Technology Collaborations: Enhance your offerings or improve efficiency by teaming up with tech providers.

What They Bring: Advanced tools, platforms, or services that complement your business.

Example: A logistics startup integrating AI-driven route optimization software from a global tech firm.

C. Market Expansion Partners: Collaborate with entities that help you enter new geographies.

What They Bring: Local expertise, regulatory knowledge, and cultural insights.

Example: A Saudi e-commerce company partnering with a local logistics firm in North Africa to streamline cross-border operations.

D. Brand Co-Marketing Partnerships: Join forces with established brands to enhance visibility and customer trust.

What They Bring: Credibility, larger audiences, and shared marketing budgets.

Example: A scaling fintech company partnering with a major bank to promote its financial services app.

E. Talent Development Partners: Work with institutions or consultants to ensure you have the talent required to scale.

What They Bring: Training programs, leadership development, and access to skilled professionals.

Example: Partnering with training organizations to upskill your workforce as you expand operations.

Identifying the Right Partner

At the scaling stage, choosing the right partner requires careful evaluation.

Key Criteria to Assess:

Alignment of Goals: Do their priorities align with your growth objectives?

Track Record: Do they have experience working with scaling startups?

Scalability: Can they adapt as your needs grow?

Cultural Fit: Do their values and work style match yours?

Due Diligence Checklist:

Review their partnership history and case studies.

Validate their operational and financial stability.

Consult mutual connections for unbiased insights.

Building Long-Term Scaling Partnerships:

 Establish clear KPIs that reflect growth objectives.

Use trial phases to test the partnership before scaling up fully.

Foster open communication to address challenges collaboratively.

Negotiate Mutually Beneficial Terms:

Define revenue-sharing or cost-sharing structures.

Protect your IP and outline responsibilities in formal agreements.

Include flexibility to adjust the partnership as your startup scales.

Managing Growing Partnerships

As partnerships grow, they can become complex. Use these strategies to maintain alignment:

Regularly revisit agreements to ensure they meet evolving needs.

Use technology to manage shared workflows and monitor KPIs.

Invest in relationship-building to keep the partnership strong.

In this stage, you may need to consider involving legal and financial advisors experienced in scaling-stage partnerships to protect your interests while maximizing potential. Also, you should avoid overdependence as relying too heavily on a single partner can expose your startup to risks. Diversify partnerships to maintain flexibility and resilience.

Wrapping this up, scaling your business is an exhilarating phase, but it’s not a journey you need to take alone. The right partnerships can amplify your impact, helping you unlock new opportunities, solve operational challenges, and solidify your position in the market.

As you navigate this stage, remember that partnerships are not just about growth but also about sustainability. Choose allies who share your vision and are committed to building a lasting, mutually beneficial relationship.

Coming Up in Episode 4: "Going Global: The Perfect Partnerships to Expand Your Startup Worldwide!"

In the next episode of The Partnership guide for startups, we’ll explore how to identify and secure the perfect partnerships for taking your startup global. Expanding into international markets requires the right allies who understand local cultures, legal landscapes, and market dynamics. Tune in to learn how to build global partnerships that accelerate your expansion and ensure your brand thrives on the world stage.