Wa’ed backs Postage, an express courier redefining ‘fast delivery’ in Saudi Arabia
March 10, 2021 – Postage, a last-mile logistics provider for businesses that is shortening the wait times for express deliveries in Saudi Arabia, has raised a seed investment from Wa’ed, the entrepreneurship arm of Aramco.
The investment, through Wa’ed’s venture capital arm Wa’ed Ventures, will enable Postage to expand beyond its current hubs in Riyadh and Al Khobar.
Founded in 2019, Postage is the first transporter in Saudi Arabia to guarantee same-day delivery for business goods between Riyadh and Dammam, a distance of 410 kilometers (250 miles), and a two-hour “bullet” service within Riyadh, a sprawling desert city of more than 7 million people.
“The Saudis are digitally savvy and used to expecting everything instantly,” said Abdulrahman AlAfaliq, Postage founder. “With Postage, we are closing gaps in the marketplace and delivering the velocity needed to fuel ecommerce across the nation. I am grateful to Wa’ed for supporting Postage, which is helping Saudi businesses keep pace with demand for shorter delivery times and rapid growth in online commerce.”
Mr AlAfaliq, who grew up in Al Khobar, got the idea for Postage while listening to friends talk about how long it took to get their eCommerce purchases delivered. A finance major, who is an Executive MBA candidate at the London Business School, he began looking for ways to shorten delivery times. His first attempt, using freelance drivers already traveling the Riyadh-Al Khobar route to transport urgent deliveries for businesses, proved impractical.
But he found success when he adapted his software logistics delivery platform to create Postage, a company that employs a mix of full-time drivers and Saudi freelancers. Postage also rents warehouses that serve as delivery and storage centers in Al Khobar and Riyadh.
The 33-year-old said he received interest from several sources who wanted to invest in Postage but chose Wa’ed because of its support to entrepreneurs and the non-financial value it brings in contacts with potential clients.
“Wa’ed is proud to support innovative, game-changing businesses like Postage, which are building a more diversified Saudi economy,’’ said Wassim Basrawi, Wa’ed Managing Director. “Postage is an example of a start-up that is raising Saudi standards for timeliness and customer service.”
Postage is delivering clothing, textiles, children’s toys, books and other goods from more than 50 corporate clients, including some international companies, which are mainly engaged in ecommerce. With the investment by Wa’ed, Postage plans to enhance its IT infrastructure, marketing, recruitment and inventory management, enable more partners through a shared economy model and expand delivery services to cities such as Jeddah, Qassim and Abha.
Mr AlAfaliq said Postage’s sales rose as online shopping accelerated during the COVID-19 pandemic, with many shoppers avoiding large crowds and malls. “People can now purchase what they dream of in a click online,” he said. “The expectation now is that delivery should take place nearly as quickly. We’re trying to close the gap.”
