Amazon have been aggressive in their expansion this year, one of them being their acquisition of online marketplace Souq.com to jump-start their business in the Middle East at a price of $580 million. Now, Amazon and Souq are making another acquisition to build up the logistics that will underpin the operation’s growth.
This week has seen Souq acquire Wing.ae, a logistics startup that is building a network for Amazon Prime style same-day and next-day deliveries for various ecommerce marketplaces (including Souq.com).
The financial details of the deal have not yet been disclosed, although it is known that Souq have previously made an undisclosed strategic investment in Wing.ae and have been working closely together for some time. Since Wing.ae was founded in 2016 by Muzaffar Karabaev, it is thought that Souq has been the only ever investor according to Crunchbase.
Souq.com is one of the leading online retail and marketplace websites in the United Arab Emirates and the wider Middle East region. It has more than 8.4 million products in more than 30 categories, including fashion, electronics, health and beauty, baby and household goods. Today it attracts more than 45 million visits per month and has operations across the Middle East including Saudi Arabia, Egypt and the United Arab Emirates.
Wing.ae was founded in 2016 by Muzaffar Karabaev and is an on-demand delivery and courier marketplace that provides a web and mobile based marketplace service which connects customers with a large network of contracted delivery services across the United Arab Emirates. It provides a wide range of delivery solutions including same-day delivery and various courier solutions as well as tracking solutions for deliveries and payments.
Ronaldo Mouchawar, SOUQ.com CEO & Co-Founder, comments: “At SOUQ.com, our customers will remain our key focus and we will continue to deliver an exceptional online shopping experience. Fast dependable delivery is key to this, and Wing.ae provides SOUQ.com customers with more convenience for their same and next day delivery. With Amazon’s support, we are putting all our efforts in providing an ever-improving shopping experience for customers in the Middle East.”
“The UAE is a leading e-commerce and smart hub in the region, and in this demanding business we work to fill the logistics supply gaps to offer customers the excellent service they want as fast as possible,” says Muzaffar Karabaev, CEO and Co-Founder of WING.ae. “With the support of SOUQ.com, Wing will accelerate investments into our technology, infrastructure and regional coverage to provide innovative delivery solutions and to make online shopping for SOUQ.com customers and merchants even more convenient.”