Local last mile logistics start up gets huge cash injection
Dubai-based One Click Delivery Services, a last-mile delivery startup has received a major boost after Middle East Venture Partners (MEVP) announced that they were investing in the company.
Although the amount injected into One Click was undisclosed, ticket sizes for MEVP’s previous funds focused broadly on the Middle East and North Africa generally range from $200,000 to $3 million, according to Forbes Middle East.
The venture capital firm said in a statement that executing last mile fulfilment efficiently was crucial to the success of the burgeoning GCC e-commerce market, echoing statements made by E-com executives at the Leaders in Logistics Conference in November.
“We believe that winning in the last-mile delivery space will require strong technology coupled with exceptional operational capabilities, that can make on-demand last-mile logistics economically viable,” said Walid Mansour, partner and chief investment officer at MEVP.
The investment comes after MEVP in September set up the $250 million Middle East Venture Fund III (MEVFIII), which is focused on early and growth-stage tech companies in the Middle East, North Africa and Turkey.
The fund was established in partnership with Dubai businessman Mohamed Alabbar, who is also the founder of local e-commerce platform Noon.com.
While SOUQ.com earlier this year directly invested in Wing.ae to enhance its last mile capabilities in the region, MEVP has insisted that the One Click Delivery Services investment was not directly influenced by its partnership with Alabbar.
The development underscores the importance of the last mile in the longer supply chain, however, especially for e-commerce operations.
The move also highlights the growing interest of homegrown e-commerce firms in local logistics companies as competition increases within the regional e-commerce space.
As Leena Khalil, co-founder of Mumzworld.com, said at the Leaders in Logistics Conference. “We don’t necessarily prefer global express logistics companies operating in ten countries, I’d rather have a super specialist courier company that only operates in Dubai, one in Abu Dhabi, one in Bahrain etc. I prefer a last mile partner that has mastered their core location.”
Founded in 2015, One Click’s platform connects drivers, point-of-sale capabilities and a call center with businesses needing on-demand delivery.
To date, the startup’s fleet of drivers have delivered more than one million orders and its platform is used by businesses in areas such as food delivery, apparel, e-commerce, groceries and parcel delivery, according to a press release.
“I am really excited about what we are building; we are solving the ‘last-mile’ logistics problem by providing a technology-enabled ecosystem solution, that connects businesses and drivers to a cloud platform, enabling smoother and seamless operations,” said Hassan Hallas, One Click’s CEO.
One Click will use the new capital to accelerate its growth plans, continue to build its team and further develop its proprietary technology.