UAE-based tech startup, FODEL, has expanded its operations in Saudi Arabia, Kuwait, Bahrain and Oman as part of its plans to set up a base across all GCC countries, providing a suitable pick-up and drop-off solution for its clients in the region.

Through its network of more than 2,000 merchants across Saudi Arabia, the UAE, Bahrain, Kuwait, and Oman, FODEL provides comprehensive geographic coverage offering online shoppers convenience, control, flexibility and choice over their e-commerce orders.

“The GCC’s e-commerce market has been booming and is expected to reach more than $20 billion worth of sales by the end of this year. FODEL is supporting this growth by offering an alternative to home delivery. We have received tremendous demand from our network of clients to expand our reach across the GCC,” says Soumia Benturquia, CEO and Founder, FODEL.

Soumia Benturquia, Founder and CEO, FODEL

According to FODEL, it is the region’s first last-mile delivery service based on the popular international pick-up and drop-off (PUDO) model. The tech startup offers a network of pick-up locations as an alternative to home delivery and puts an end to the uncertainty associated with last-mile delivery by making the process simple and convenient.

It turns local merchants into pick up points to enable online shoppers to collect their parcels – any time they want from their local store. Retailers also benefit from increased footfall and revenues from the pick-up, while for e-commerce companies and logistics players it simplifies the last mile delivery and offers a better alternative for online shoppers than home delivery.

In addition, FODEL also solves a major problem for logistics and e-commerce companies by massively expanding their delivery capacity.

According to industry reports, last-mile delivery failure rates range between 15% in the UAE and 40% in Saudi Arabia leading to poor customer satisfaction and lost revenue in a region where online shoppers still pay cash on delivery for a large share of their purchases.

FODEL says its scalable solution also improves bandwidth during peak seasons such as Ramadan and other festive seasons when logistics partners get overwhelmed with demand. The supply chain also benefits from the significant reduction in return to origin (RTO) deliveries, an issue for shippers and e-tailers especially in the GCC markets.

The start-up is funded by several prominent investors and advisors including Dubai Cultiv8 Investments, a wholly-owned subsidiary of the Mohammed Bin Rashid Fund for SMEs, a fund from Al Rajhi family members and ex-FedEx Senior Vice President – Europe, Middle East, Africa and Indian Sub-continental, Hamdi Osman, a 33-year logistics industry veteran and a strong figure in the region’s express delivery sector.

Hamdi Osman, who also serves as FODEL’s Chairman, says: “FODEL has transformed the last mile delivery model for the entire logistics landscape in the region. Its disruptive technology and proven business model add great value at every step of the supply chain while providing flexibility and peace of mind to the end-users of courier services.”