The demand for last-mile delivery – the point at which deliveries arrive at shoppers’ doors – is increasing across the GCC.
Sixty-four per cent of shoppers in the GCC place shop online at least once a week, exceeding the global average by 20 per cent, according to a report by global cultural agency CRTKL.
The Covid-19 pandemic fuelled this growth, alongside the region’s growing retail landscape, said the report.
“The region is perfectly positioned for last-mile delivery due to rapid urbanisation and excellent road infrastructure in the radius of retail,” said Paul Firth, associate principal at CRTKL.
“As hybrid shopping centres move towards experiences, certain areas can be reused as fulfillment centers for online sales with an increased emphasis on flexibility as health and wellness become increasingly important.”
The rapid progress in software engineering for online delivery options and innovations in urban logistics and infrastructure have significantly enhanced speedy delivery options.
Taking advantage of cutting-edge logistical technologies, such as smart logistics management platforms, can cut last-mile delivery costs by 14 per cent and allocate 13 per cent more deliveries to each driver, CRTKL said.
Sustainability issues are also gaining momentum among GCC shoppers, with 83 per cent of UAE residents mindful of the environmental footprint of shopping policies, according to the report.
“We are committed to planet-positive design and enhancing connectivity with the implementation of innovative last-mile solutions key to an enhanced and convenient retail experience,” Mr Firth said.
The retail mobile-commerce market in the UAE is set to grow with a compound annual growth rate of 18.9 per cent until 2025, with more startups eyeing last-mile delivery solutions, as per Euromonitor’s data.
To date, approximately 51 last-mile delivery startups are located in the GCC, with 22 headquartered in the UAE and 16 in Saudi Arabia.
