The Group

Strategic themes and objectives

Following its rapid expansion from 2019 to 2021, the Group identified three primary strategic themes around which its future growth ambitions were outlined:

• Strengthening the Group’s operations in existing geographies by winning market share and new customers and partners
• Expanding the business into supporting verticals and entering new geographies for future growth
• Differentiating the Group’s services and offerings through continuous innovation

The strategic themes have been cascaded into strategic objectives across the Group’s main business verticals.

• Expanding the Group’s regional footprint by leveraging its competitive value proposition
• Strengthening the presence of every subsidiary across the Kingdom
• Launching every available service in new cities both in the Kingdom and the region
• Drive operational excellence and customer experience through continuous investment in training, processes and technology
• Spearheading a Kingdom-wide transformation to a digital lifestyle by creating innovative, high-tech food delivery, online shopping, cloud kitchen and last-mile delivery solutions

Our holdings

Over the past few years, Jahez established or acquired a number of fully owned or partially owned subsidiaries that have shaped the Company’s ambitious diversification trajectory, each subsidiary fulfilling a unique business objective.

Subsidiaries overview

Subsidiary	Ownership percentage as at 31 December 2022	Country of operation	Country of incorporation	Legal entity
PIK Option Trading Company (PIK)	100	Kingdom of Saudi Arabia	Kingdom of Saudi Arabia	A single shareholder limited liability company
Joint Preparation Company for Meals (Co Kitchen)	60	Kingdom of Saudi Arabia	Kingdom of Saudi Arabia	Limited liability company
Supportive Solutions Company for Logistics (Logi)	100	Kingdom of Saudi Arabia	Kingdom of Saudi Arabia	A single shareholder limited liability company
The BLU Store	51	Kingdom of Saudi Arabia	Kingdom of Saudi Arabia	Limited liability company
The Red Color Company (Red Color)	100	Kingdom of Saudi Arabia	Kingdom of Saudi Arabia	A single shareholder limited liability company
Marn Business Information Technology Company	100	Kingdom of Saudi Arabia	Kingdom of Saudi Arabia	Limited liability company

 

The Jahez Platform – online food delivery

Jahez is the Group’s primary online food-delivery platform that links merchants, customers and delivery partners in a one-stop-shop solution that meets the logistical needs of all three.

During 2022 Jahez served around 10,000 merchants, from high-end restaurants and QSR to home bakers and corner shops. Post-IPO, Jahez continues to avail opportunities to merchants to expand their footprint in the market particularly in contrast to traditional expansion methods.

Jahez offers its range of services to customers across the Kingdom, providing them access to a diverse and ever-widening range of merchants. The dining options continue to increase and in 2022, the platform covered over 90 cities serving over 90% of the total population of the Kingdom. During the year under review, the number of active users on Jahez increased to 2.8 million (48% increase YoY) as smartphone penetration and delivery culture soared further despite an end to pandemic lockdowns. From 2016 to December 2022, over 150 million orders have been completed on the Jahez platform.

As of December 2022, the Group was served by 60,000 delivery partners, providing them the opportunity to earn through the Group platforms that links them to an order-rich network of merchants.

Customers can choose from a list of available merchants or use platform suggestions, pay using a number of digital payment options or cash-on-delivery if they prefer. Once a delivery representative is assigned to a specific order, the customer can track the progress of the order. Customers may while away the time playing one of several games included on the Jahez app.

The platform is built on state-of-the-art technology, delivering a seamless end-to-end experience for merchants, customers and delivery partners. New iterations of the app boast boosted automation, giving rise to increased efficiency of order management which is carried out in a centralized fashion utilising as few resources as possible allowing further expansion.

Revenue streams of the business are primarily through commission income, advertisement fees, e-payment fees, and delivery fees.

PIK Platform – direct commerce

In November 2020, the Group created PIK Limited Company, with a later platform soft launch scheduled for Q1 2021. PIK was the Group’s first stop in its diversification drive. Tapping into increased demand for online delivery services outside the food and beverages service, the Group expanded its delivery service beyond the restaurant segment, digitising local retail merchants with deliveries directly from the shops.

PIK is a quick or q-commerce platform that connects customers to merchants located within a 100 kilometre radius in cities and suburbs alike. The platform offers merchants access to customers at affordable rates. Products sold on PIK range from clothing, cosmetics and footwear to electronics, among other things, representing some of the best known brands locally and internationally with deliveries made within two to three hours.

From order selection and offering to payment options and last mile delivery, the PIK platform covers the entirety of the digital shopping process, with a searchable and filterable assortment of product and merchant categories, e-payment services, live order-tracking, direct customer support, a return policy and other features.

The platform generates revenue through the following channels:

• Per-order commissions charged to merchants every time a customer places an order with the merchant through the PIK platform
• Fees charged in connection with advertisement placements such as promotions and premium listings on the PIK platform;
• e-payment fees charged to merchants in case of payment by credit card or digital cards
• Delivery fees paid by customers

Co Kitchens – cloud kitchen

Co Kitchens Limited Company, the cloud kitchen business that the Group owns a 60% stake in since 2020, is centred around end-to-end commercial kitchens used by the merchants to serve food solely via digital delivery platforms. This involves leasing and equipping commercial kitchen spaces and subleasing them to restaurants that only serve customers who order their food online.

Co Kitchens provides holistic, turnkey solutions to restaurants in the form of cooking and meal preparation facilities and other resources. This allows competing restaurants to share infrastructure, saving them considerable overhead costs including rent and utilities costs as well as valuable time and resources they can redirect to more productive endeavors that facilitate growth. Though these digital restaurants forego dine-in services, the savings made by investing in a cloud kitchen service are demonstrably worth the switch and lead to a significant rise in the volume of orders.

Market reports indicate that numerous restaurants are making the switch, taking into account the opportunity cost of running a dine-in restaurant complete with its own kitchen and equipment and focusing instead on delivering a value-for-money meal that customers can enjoy in the comfort of their home. Research also shows that orders coming via online platforms lead to shorter delivery times, in turn leading to more satisfied customers.

As of December 2022, Co Kitchens hosts over 150 brands and restaurants in five different cities. The subsidiary’s revenue model involves a variable commission agreement with each restaurant partner. Co Kitchens develops new cloud kitchens by leasing locations under long-term lease agreements. The subsidiary’s in-house project team together with various contractors oversee the implementation of new cloud kitchen projects in line with a set of initial plans and specifications that can be malleable depending on the circumstances, allowing Co Kitchens a more flexible design process and cost and time control. Development typically takes three to five months and includes designing kitchen spaces, preparing gas, ventilation and electricity connections, and installing the required furniture and equipment.

Logi – logistics

Logi, launched in Q3 2021, serves as the Group’s wholly owned logistics subsidiary and a market enabler for the Kingdom’s bustling e-commerce and delivery industry. On track to being the market leader in urban last-mile delivery, Logi provides a fleet of delivery partners first to Jahez Group companies and then to the wider e-commerce and postal logistics sectors at competitive rates.

Formally named Support and Logistics Solution Company, Logi was established as a single shareholder limited liability company fully owned by the Group with a capital of SAR 1,000,000.

Logi is a centralized platform that supports the Group with all of its logistical and operational needs, synergising the Group’s operations. The subsidiary bridges the gap between customers and merchants and also employs employees of the Group’s logistical staff including delivery partners through both Jahez and third-party platforms.

Logi’s services are available round the clock with short delivery times, multiple pickups and delivery tracking as its unique selling point, for both food deliveries and business-to-business deliveries. Low operational costs, scalability and consistently high quality are among its other salient features.

The subsidiary generates revenue through the delivery fees charged to the Group platforms.

BLU Store

In Q3 2022, the Jahez Group established BLU Store, a joint-venture with AlHilal Club where the Group owns 51%. It is a platform specialising in selling and marketing sports related products and services representing different leading brands. The Blu Store platform was launched for customers to purchase products which are delivered to their doorsteps within hours in a hybrid of on-demand and e-commerce models (with worldwide delivery).

BLU was the first interactive app of its kind in the region and was marketed as the Kingdom’s home of all things sports, providing goods, services and news to both sports professionals and amateurs as well as fans. Customers can also purchase tickets to prominent sporting and non-sporting events through the app.

Red Color – investments

The Group’s investment arm, Red Color was established in Q1 2021 with a view to delivering the best value to all stakeholders, targeting investments that would maximize the Group’s corporate value. This would be achieved through strategic partnerships that add value and align with the existing solutions offered, financial returns generating future gains or minimising costs, and the acceleration of entry into new verticals.

Red Color invests in technology opportunities and in industries that already employ the Group’s existing assets of customers, merchants and delivery partners to leverage its position. These industries include automated marketing, supply chain and fintech solutions, direct-to-consumer services and lifestyle improvement services.

Red Color targets seeks to boost returns for the Group through investments that contribute to growth, primarily by acquiring new customers, providing entry into new markets and increasing community engagement.

The subsidiary aims to reduce costs for the Group by way of operational cost savings, time saving and accelerating expansion using less capital. Red Color also provides data on technology trends, market trends and anomalies.

Venturing overseas

Subsidiary	Ownership percentage as at 31 December 2022	Country of operation	Country of incorporation	Legal entity
Jahez International Company WLL	100	Kingdom of Bahrain	Kingdom of Bahrain	Limited liability company
Jahez International Company for Wholesale and Retail Trading	100	State of Kuwait	State of Kuwait	Limited liability company

Built on its pre-IPO successes, the Group made forays into the regional market, establishing its presence in Bahrain and Kuwait as part of its expansion strategy to enhance Jahez’s footprint in Gulf Cooperation Council (GCC) countries.

On December 14, 2021, Jahez established its legal entity in the Kingdom of Bahrain as a one-person limited liability company named Jahez International Company W.L.L with a capital of 50,000 Bahraini dinars. This Company is engaged in retail sales via the internet. Commercial operations in Bahrain began on June 26, 2022 penetrating the market with a distinctive delivery experience.

Towards the end of 2022 Jahez officially created its legal entity in Kuwait and began team implementation, with a view to disrupt the online delivery service market that was already showing promise. A soft launch for the operations is planned during Q1 2023.

 

Geographic spread

With a large and diverse distribution of merchant partners, the Group continues to reach a growing number of customers across the Kingdom.