The new business vertical YallaHub provides business owners access to logistics, marketing, last-mile delivery infrastructure, and all the means necessary to reach customers in Dubai directly within 15-30 minutes.
The rapid grocery delivery service YallaMarket was launched in Dubai back in August 2021, and already has well established infrastructure for doing q-commerce business. Currently, it has 7 hyperlocal warehouses located in areas of high demand in Dubai, 60 riders, technologies for storage, packaging, and order picking and delivery.
Commenting on the announcement, Leo Dovbenko, CEO and Co-Founder of YallaMarket said: “Consumers in the Middle East and North Africa region want fast delivery, and this is becoming the new normal. In a year of work we’ve realized that in Dubai commodities are sold both offline and online with long delivery times. Merchants want to scale online business, increase revenue, and optimize costs, but this will require a significant CAPEX investment. We offer such merchants the ability to switch to express delivery: doubling their conversions and LTV. YallaMarket’s assessment confirms that this works. If you deliver things very quickly, you will have a very high frequency of orders: the more, the better in q-commerce. For instance, customers of YallaMarket order, on average, ten orders per month, which is quite a good number”.
YallaHub integrates all market parties into one technological and scaling platform. Businesses from any country can benefit from YallaHub’s in-house infrastructure: imports, warehouses, storage, fulfilment, logistics, payment gateways, customer service teams, access to third-party aggregators, marketing tools, and super fast delivery. By doing this, they can easily and immediately enter the UAE with an outlook to reach the whole MENA market.
“YallaHub is not another aggregator, but a rapid delivery business. We help e-commerce entrepreneurs scale geographically without opening new stores. Additionally, our clients keep their old sales channels: their own websites, apps, aggregators and marketplaces” — Leo Dovbenko added.
The new B2B model offers benefits to businesses, including:
- Premium packaging and rapid delivery to end customers: 15 minutes in central Dubai areas, 30 minutes in Dubai’s remote zones, 24 hours across the UAE;
- Storage of goods in our warehouses (financial responsibility);
- Creation of virtual stores in aggregators and sales growth therein.
The first clients were brands of cosmetics and perfumery, food and beverages, clothing and underwear, beauty goods and accessories, electronics and accessories. Large retailers are currently in the process of negotiating agreements.
“Our vision is that everything in the GCC will be delivered quickly, reliably, and conveniently. Q-commerce as a service can help any brand enter the UAE and potentially MENA markets without building huge offline and online infrastructure” — Leo Dovbenko, CEO and Co-Founder of YallaMarket commented.
After expanding YallaHub across the UAE, the company also plans to launch branches in Saudi Arabia as a second phase. Saudi Arabia’s quick commerce market revenue from 2018 to 2021 was 61.7%, and projected growth from 2021 to 2016 is expected to be 17.1%.
The third phase is to launch YallaHub in other GCC countries, providing the opportunity to deliver everything quickly and conveniently. The MENA region is one of the most promising markets in the world when it comes to quick commerce. The MENA region's quick-commerce market is expected to reach about 172 billion SAR by 2030, with an annual growth rate (CAGR) of 17%, which will be the highest rate among growth sectors, with groceries & food delivery being the top contributors.
YallaMarket delivers high-quality groceries and other household goods directly to doorsteps in Dubai. The service operates through dark stores located in seven areas of Dubai: JLT, Business Bay, DSO, Marina, Deira, JVC, Al Wasl.
Clients receive their orders within just 15 minutes from the nearest dark store, due to a hyperlocal delivery area concept and extremely high pick-up speed. A specialized layout of goods combined with the dark store’s inaccessibility to the customers allows the couriers to collect the order in just 3 minutes after the purchase is made. As stores are located in residential areas with high-density neighbourhoods, couriers are able to deliver several orders per ride.
YallaMarket’s assortment includes more than 3500 items, including fresh meat and fish, wellness products, dairy, fresh flowers, and pharmaceuticals. With a 99% fulfilment rate, 8 minutes is the average delivery time in target 15 minute zones.
The startup was founded in August 2021 by a team of Dubai-based entrepreneurs with a large background in food tech, and raised $12M from Wamda Capital, Doha tech Angels, Fry One Ventures, and Dubai Angel Investors.