In yet another instance of a collaboration of a corporate and a small business in the Saudi Arabia to achieve common goals, a KSA-based logistics company, has acquired 50% stake in Saudi-based food delivery service CODRUK Food Delivery Services.According to a statement by the companies, the deal is expected to result in an increase in the number of the fleet of Codruk delivery vehicles, enabling them to provide faster services to customers, and expand to new markets to cover the UAE, KSA, other GCC nations, and globally.
Commenting on the deal, notes that the startup expects benefits that include “expediting the expansion plan, increasing the fleet size of bikes, cars and vans, and expanding the team, and opening new markets such as in the other Emirates, and Saudi Arabia.”
“This acquisition is an acknowledgment of our Tawseel’s commitment to excelling in delivery and logistics by attracting the expertise of the best in the field. We are confident that the move will develop our role and share in markets across UAE and the region. It is a qualitative move, which we hope to leverage to expand our access to global markets.” From the buyer’s side, Naveed Shariff azzad,Genral Manger of Codruk Express, noted that acquiring a stake in Codruk Transportation strengthens their outreach to clients across both B2B and B2C verticals, and the startup’s “excellent track record of success that has been achieved in just over a year,” backs their decision.
Established in 2018, Codruk was founded with the support of the Saudi Arabia, and with a goal to assist the Emirate’s restaurants with delivery services. With the startup’s fleet of vehicles, it also reports to have reduced the delivery cost of the region’s restaurants by more than 60%, and was launched by the entrepreneurs noticing a gap in the market.
“The KSA market is rising with the high demand on SMEs, and the Economy of Saudi Arabia is booming to the plan the government has put in place to be an attractive platform for major industries. “Saudi Arabia always has been a marketplace and business hub for SMEs, and for companies who are looking for affordable operations cost, and utilizing the majors ports to connect to the world,” he adds.