Amazon, the world's biggest online marketplace, opened its largest delivery station in Abu Dhabi as it continues to scale up operations.
The 4,700-square-metre centre — the company's second-largest in the UAE — provides same-day and one-day delivery services to its customers in Abu Dhabi.
It also comes in the lead-up to next month's Prime Day — Amazon's annual mega-sale event exclusively for Prime members — during which orders and deliveries increase sharply, the Seattle-based company said on Thursday.
The centre will create hundreds of jobs that Amazon says will help to shape the future of commerce in the UAE.
All employees will be eligible for training programmes meant at upskilling their talent to be prepared for the future of the sector, the company said.
“Built within Abu Dhabi’s ecosystem of innovation, our new delivery station brings world-class last-mile technology to the logistics and supply chain sector in the capital,” said Prashant Saran, director of operations for Amazon in the Mena region.
“The range of jobs at this facility will help to nurture the city’s talent pool and prepare them for the digital future that Abu Dhabi is striding towards.”
Amazon is the largest e-commerce player in the UAE, with net sales of about $500 million in 2021, data from ecommerceDB shows.
Namshi, the e-commerce unit of Dubai's Emaar Malls, was second with $249m while Noon, the portal backed by Emaar founder Mohamed Alabbar and Saudi Arabia's Public Investment Fund, was next with $169m.
Globally, Amazon is facing several headwinds, including supply chain glitches, rising inflation and the challenge of labour unions in the US, not to mention a slowdown in overall revenue.
The company reported its first quarterly loss in seven years in April and projected sluggish second-quarter sales growth as the gains it made during the Covid-19 pandemic, which supercharged the delivery and logistics sectors, started to wane.
However, the UAE presents a big opportunity for the company, with the country's e-commerce sector forecast to grow 60 per cent to more than $8 billion by 2025, from 2021, and as consumers across the region continue to shift towards online retail, according to a recent report by Euromonitor International.
Amazon's newest centre is a follow-up to its announcement in November about building the Middle East's most technologically advanced warehouse in Abu Dhabi through a partnership with the Abu Dhabi Investment Office.
The 175,000-square-metre site, which would be the largest in Abu Dhabi once it opens, is expected to be completed by 2023, Amazon said on Thursday.
It will also create thousands of jobs and drive innovation in logistics, as well as give local entrepreneurs and retailers access to new markets through Amazon.
“We pride ourselves on working alongside partners such as the Abu Dhabi Investment Office, who share our focus on innovation and providing the right resources and logistics to enable businesses and talent in Abu Dhabi to excel in the digital economy,” Ronaldo Mouchawar, vice president of Amazon Mena, said.
The Amazon-Adio partnership reflects the ease of doing business in Abu Dhabi and the long-term growth opportunities available in the emirate, said Abdulla AlShamsi, acting director general of Adio.
“Amazon supports our vision for sustained investment in innovation and is bringing the latest logistics technologies to the region. The opening of Amazon’s new delivery station and planned fulfilment centre in 2023 will establish Abu Dhabi as a major global hub for e-commerce and logistics,” he said.
Amazon's new delivery centre will also serve Abu Dhabi's outer areas, including Al Samha, Al Shawamekh, Yas Island, Saadiyat Islands, Bani Yas and Al Wathba.
The company, founded by billionaire Jeff Bezos, continues to invest in the UAE, especially in employee safety, owing to the Covid-19 pandemic.
Amazon said it has invested more than $15bn in pandemic-related measures globally.
Earlier this month, the company announced that it would start to use drones to deliver some purchases to US customers later this year, starting in parts of California.
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Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
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hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
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Rating: 4/5
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3/5 stars
