Egypt: ShipBlu revolutionizes last-mile delivery

By : Adoni Conrad Quenum

Date : jeudi, 14 avril 2022 15:36

In Egypt, 40% of deliveries fail. This is four times higher than the global average, which is about 8%. Concerned by the situation, several local entrepreneurs have been trying to deal with this challenge which plagues a sector that is worth about US$3.1 billion in the Middle East and North Africa (MENA) region.

ShipBlu is a digital platform that provides last-mile delivery services in Egypt. It fulfills orders not only from individuals but also from online shopping platforms and local stores. It was co-founded in 2020, by Ali Nasser (photo, center), Ahmed ElKawass (photo, right), and Abdelrahman Hosny (photo, left). In October 2021, the startup completed a US$2.4 million funding round, with investors including Nama Ventures and Orange Ventures, to improve its services and support expansion.  

The idea for ShipBlu came from Ali Nasser’s realization of the state of delivery services in the country.  “Roughly 56% of the time when someone in Egypt places an order online, they don’t even get a delivery date. After you place your order and you get an email confirmation, it’s complete silence until, on a random day, you’re going to get a call from the agent who’s on their way to you asking if you are available to pick up the package. We’re changing that,” he explains.

To change things as they put it, ShipBlu founders created a platform allowing users to access marketplaces and online stores of partner brands operating in Egypt. The partners usually have stocks in ShipBlu’s warehouses to allow the startup to quickly deliver placed orders. Right from their ShipBlu dashboards, users can monitor the status of their orders. 

The startup, accelerated by Y Combinator, usually delivers orders within three hours and users always have an idea of when they will receive their packages.  

Deliveries are billed per the size of the package, the delivery time frame selected, and the destination. The startup claims to have developed an Artificial intelligence and machine learning algorithm to “reduce costs, meet delivery constraints and refine its operating assumptions.”

ShipBlu’s system improves the quality of the services offered by online shopping platforms in the country despite addressing problems that arise due to inaccurate or non-existent postal codes. 

Adoni Conrad Quenum


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