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Portfolio Review
Logistics Services
Having endured and overcome a number of challenges that defined the year 2022 for this sector, the logistics portfolio emerged stronger during the reporting period and is now poised and is expected to be a major growth-driver for the Group in the near future.
Logi is a wholly-owned logistics subsidiary and a market enabler for the Kingdom’s bustling e-commerce and delivery industry. On track to being the market leader in urban last-mile delivery, Logi provides a nearly 14,000-strong fleet of Saudi freelancers and Non-Saudi permanent delivery partners first to Jahez group platforms and to the wider e-commerce and postal logistics sectors at competitive rates.
Logi is a centralized platform that supports the Group with all of its logistical and operational needs, synergizing the Group’s operations. The subsidiary bridges the gap between customers and merchants and also employs the Group’s logistical staff including delivery partners through both Jahez and third-party platforms.
Highlights of 2023
Logistics always presented a number of challenges to the Group, but 2023 was the year that saw the portfolio shine, brimming with potential. Today, it is a vitally important vertical, one that the Group is determined to grow, with the fleet now covering +30% from the group's total orders.
Commercializing Fleet
An exciting project that’s currently underway is the ongoing commercialization of Logi’s existing fleet as part of a fundamental growth strategy that applies to the entire Group. Plans have been formulated to build a suite of interacting products such as the existing Saned platform that delivery partners can use to accept orders through Jahez, PIK or Blu.
By capitalizing its logistics platform, the Group intends to commercialize Logi’s fleet to open demand and increase the delivery partners productivity by optimizing its services.
New Ventures
The Group has invested in four new logistics companies: Redbox, Parcel, Barq and CloudShelf, which demonstrates our keenness to invest in this sector as a major component of the business.
Logistics is currently booming in Saudi Arabia, and we believe logistics as a standalone business is a great opportunity given the severe shortage of last-mile delivery agents in the Kingdom. The demand for drivers exceeds over 100,000 needed over the next two years, which presents an opportunity for Logi.
Growth Outlook
Logi’s revenue streams include:
Going into 2024, the Group will focus on Saned subscription model and the proposed fulfilment center as new revenue streams. While the Company’s current focus is to expand the cohort of full-timers based in more cities, by the end of 2024, we intend to increase the number of full-timers. In addition, we plan to add to our revenue streams by integrating with more clients outside of the Group.
In the new year, Logi will continue to be the leading platform in last mile delivery where the company manages all last-mile deliveries for all Jahez platforms and will also expand its services to other courier players.