A newly launched start-up in Dubai is hoping there will be enough e-shoppers wanting to do their own pick up. Through alliances with retailers, Fodel now has set up a network of 1,000 parcel pickup locations in the UAE. This includes outlets operated by the likes of Choithrams, Al Maya, BlueMart, 7Eleven, Zoom and Adnoc stations. Its retailer alliances extend to Landmark Group and Sephora.
Fodel’s tech platform allows consumers to pick up the parcel “at the time they want and where they want it”. But for shoppers, a big plus would be a chance to drive down the shipping costs on their bill … even if it means driving down to pick up their parcel.
This way, the business is holding out the promise of lower delivery charges for a shopping transaction, which in these cost-conscious times should go down well with buyers. In short, Fodel wants to reduce reliance on “last-mile” delivery, which happens when a third-party delivery service picks up the order from the vendor and then drops it at the shopper’s residence or office.
“The last-mile’s hefty share in total parcel delivery cost often reaches — or even exceeds — 50 per cent,” said Hamdi Osman, Chairman of Fodel and with a 33-year track record in the logistics industry. “The speed of e-commerce development combined with digital innovation and changing consumer patterns makes last-mile delivery an important investment opportunity.
“Through our platform, consumers can pick up their parcels from their local grocery, pharmacy, laundry, florist or from their gas stations on their way to the office or during the school run. We thus achieve a much higher same-day delivery ratio than traditional courier services. Also, it saves time as customers are not waiting all day for the courier to show up or answering phone calls from the courier company about their location.”