In an e-commerce space dominated by large players that have revolutionised the way urban consumers purchase goods, like Amazon and Instacart for retail or UberEats and Zomato for food and groceries, other companies are at a disadvantage. The transformation in customers’ expectations, accelerated by the Covid-19 pandemic, combined with the rise of q-commerce (or quick-commerce, defined as on-demand or rapid delivery) with a MENA market expected to reach about $47 billion by 2030 according to consultancy Redseer, has prompted numerous brick-and-mortar retailers to develop their own online platforms and set up delivery management systems that rarely were part of their original business model.
That’s where Yango Deli Tech comes in. As CEO Max Avtukhov says, “When retailers rely on aggregators, they lose control over their customers. Aggregators can influence which brands are presented to the customers, essentially transforming retailers into distributors with lower margins. This dilutes their brand identity and forces them to compete with other distributors.”
Recognising the need for technology-driven solutions to support these traditional retailers’ and marketplaces’ transition to online trade and efficient delivery processes, the software as a service (SaaS) self-funded company provides proprietary technologies and expertise for e/q-commerce, aiming to level the playing field by helping them establish their brand presence online and enhance their competitiveness online.
Avtukhov explains, “We started the company with the vision of becoming a global solutions provider to retailers dedicated to quality and efficiency. We understood the importance of service quality and technology for retailers and built a system around fulfilment automation, warehouse management, and other essential aspects. Our tech stack serves as building blocks for retailers to establish an online presence, enhance their current offerings, and compete on par with aggregators.”
Online retail made simpler and more efficient
With the MENA e-grocery sector worth roughly $25 billion, the industry has a lot of room to grow and Yango Deli Tech proposes to shape this transformation, shifting from the current grocery 1.0 model where convenience drives online shopping, to a grocery 2.0 model focused on affordability and efficiency.
Whether clients have an existing store, store-in-store (grey store), or a dedicated dark store (a retail distribution centre that caters exclusively to online shopping), Yango Deli Tech has solutions for e-grocery to improve and simplify operational processes. “By leveraging software and operational excellence, we can make online grocery shopping more efficient than traditional methods. This shift will disrupt the industry and create a new era where prices prevail, benefiting both retailers and customers,” explains Avtukhov.
Offering tools for fulfilment, commerce, delivery, client experience, and analytics, the platform’s end-to-end solutions allow retailers to deliver goods on time and in full, enabling them to compete on par with aggregators, solving the problems most faced by retailers - including the inefficient fulfilment and delivery process. “Customers often experience long waiting times and uncertain delivery windows [...] Our solutions ensure orders are fulfilled in full, reducing wait times and making deliveries more cost-effective,” says Avtukhov. Yango Deli Tech’s proprietary technologies encompass a variety of services such as warehouse management systems, assortment management, stock tracking and product replenishment, as well as technologies for assigning orders to couriers, smart routing solutions, and applications for customers, pickers and couriers - allowing retailers to enhance their operational efficiency and offer top-quality services to their customers.
Clients’ onboarding goes through three stages. First, a dedicated space for online orders is launched within an existing store. This proof-of-concept phase allows the team to assess the operations and make the necessary adjustments. Then, existing assets are converted or dedicated dark stores are launched to serve specific areas and streamline operations for up to six months, depending on the size of the partner. Once the results are optimised, operations can be scaled and the team can focus on building density in terms of orders and inventory flows, maximising efficiency and achieving commercial viability.
In practical business terms, companies that opt for Yango Deli Tech’s solutions can on average reduce error rates by 15% and cancellation rates by 35% according to company estimates, which would have a major impact on their business revenue growth.
Today, Avtukhov prioritises investment in areas such as research and development, working on incorporating the latest technologies, such as artificial intelligence and robotics, to offer even more advanced solutions. And, while Yango Deli Tech is now active in Saudi Arabia, Turkey, and the UAE, where it went live in December 2022, the 32-year-old co-founder considers expansions to other regions such as Africa, Latin America, and Asia, living up to his ambition to create a truly global company.
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