Entrepreneurs
Awok: The E-commerce Giant That Shook Dubai and Faded Away
Once a household name in the e-commerce landscape of the UAE, offering affordable items across various categories such as fashion, electronics, and home essentials, Awok was once a popular brand that played this particular space to optimize its offerings. Launched in 2013 as a revolutionizer of online shopping in the UAE and beyond, Awok quickly rocketed as one of the most preferred go-to options for customers when looking to save money. It did so despite raising considerable funding in 2019. Global financial issues forced the firm to close its doors in August 2020. What inspired its fast ascent and fall? Let’s dig into the story of Awok’s journey in dynamic world of e-commerce.
They specialized in clothing, fashion accessories, kitchenware, home appliances, consumer electronics, and beauty products. Selling them at very cheap prices, Awok drew a fantastic number of customers in no time, and soon became one of the renowned leaders in e-commerce in the UAE and Saudi Arabia.
One of the major reasons why Awok gained success was that it was mobile-centric, ensuring that online shopping was reachable to more people than ever before. Aiming for mobile shoppers with the introduction of the smartphone, Awok launched easy-to-use apps and web sites that help in swift turnaround in managing products for customers in transit. It exercised a business model, keeping affordability as its core business. With around 70,000 products available in more than 30 categories, Awok was well poised to be the number one e-commerce channel for locations established there. Affordability and seamless shopping experience helped Awok gain a considerable share in e-commerce within the UAE. The courier fleet owned by Awok enabled the company to maintain consistency in quality of service over which it had full control, thus providing timely delivery. Vertical integration was necessary for maintaining customer satisfaction amid mounting demand for efficient delivery.
In April 2019, Awok hit a milestone when it accepted funding of $30 million from a set of investors. The new round of funding would be used to further the expansion of the company and to develop its private label, which would enable it to offer unique, exclusive products for further differentiation in a fiercely competitive e-commerce marketplace. With these investments, Awok aimed to double its logistics infrastructure and add more strengths to its offerings with a view to becoming a major e-commerce player not only in the UAE but across the MENA region. The company had grown to about 700 employees and was running their own fulfilment centre and logistics, which was helping with cross-border sales for more than 120 countries’ customers.
Despite the fast rise and grand ambitions, it was no sooner than a few months after bagging the $30 million investment that Awok began to face financial constraints. June 2019 reports hinted at the fact that it had stopped paying its creditors- its suppliers, logistics partners, and even some employees on its payroll. Such instability in its books had waves of scepticism come through, and discussions over the operations of the company started. Although the reasons for these financial troubles are not very clearly spelled out, it’s well known that the cost of running an e-commerce business is typically rather high, both in terms of supply chain management and logistics and marketing. Owning such a large number of delivery vehicles in Awok’s case, operating its own warehouse, and keeping prices low, no doubt weighed their books too heavily.
A shocker was the announcement by Awok that it would close its shop without prior warning. The company stated that a global financial meltdown was the reason for shutting down. Most people were shocked because just recently, funding had been provided to the company and even planned to expand. The site and apps turned off, keeping both customers, suppliers, and employees in the dark. But the closure of Awok revealed a pain point for the e-commerce sector in an increasingly competitive landscape such as that in the UAE, though the company had managed to assemble a loyal customer base via its pricing model.
The rise and fall of Awok make for a fascinating story to be told about the fast world of e-commerce. While it was successful in establishing a brand that many customers learned to rely on for inexpensive goods, the firm ultimately buckled under the weight of financial pressures resulting from the speed at which the business expanded and the vagaries of the global economy. The history of Awok is reminiscent of all the pains of building a successful e-commerce business. This is highly competitive industry with high operational costs and obsessive innovation to remain ahead of the game. The bolder the plans of Awok, the sharper is what could be learned about maintaining profitability through a feasible financial model and being resilient in times of turbulence in markets.
Even though it is no longer active, the impact Awok has had on the landscape of e-commerce in the United Arab Emirates is, without a doubt, spectacular. The company pushed boundaries by bringing more people into the world of online shopping and challenged competitors to follow suit. In the process, Awok paved the way for the growth of the UAE’s e-commerce market and proved that there is always room to innovate, create something new, and work upon it.
Entrepreneurs
Carlton Hotels & Suites: Dubai’s Iconic Luxury Hospitality Leader
Carlton Hotels & Suites was established in 1977 with the launch of Carlton Tower Hotel in Deira, Dubai’s first five-star hotel. This small investment in the emirate mushroomed into a multinational hospitality brand recognized for excellence and sophistication. Today, the Carlton Hotels & Suites brand extends throughout the Middle East and Europe, and is characterized by luxury and comfort and world-class service. Starting from humble beginnings, the group has evolved into a group that has 9 directly managed hotels and 3 franchise-operated properties, all offering guests unforgettable hospitable experiences. Its headquarters are located on Sheikh Zayed Road, behind the iconic Burj Khalifa, set once more as the standard of luxury hotel excellences in this region.
It was then when hospitality in Dubai started changing with the opening of Carlton Tower Hotel in 1977, marking the city’s first 5-star property. The land-mark hotel based at the heart of Deira became a springboard for Carlson in hospitality. Carlson Hotels & Suites has aggressively expanded its offerings by increasing its presence in some of the biggest markets across the Middle East and Europe over the years. Today, it runs 12 hotels across 3 countries in the Asia-Africa-Indian Ocean and Asia-Pacific regions, accounting for 1,156 hotel rooms. The most recent upcoming asset by the chain will be Carlton Dubai Creek, which is scheduled to launch in 2022.
Carlton Hotels & Suites is owned by First Investor LLC, part of the Al Fardan Group of Holdings, which boasts more than 25 years of experience as a global investment company. Under their leadership, Carlton Hotels has thrived. However, in 2017, the group made one great stride ahead with the Carlton Downtown Hotel on Sheikh Zayed Road. Housed in one of Dubai’s twin buildings famous worldwide, this property raised the standing of the brand to another level. The Carlton Downtown Hotel has gained international acclaim for striking structure and premier comforts. This ranks among the top 30 tallest hotels in the world; its rooftop, open-air pool, and views of the Dubai skyline make it one of the highest open-air rooftops for visitors.
What Carlton Downtown is famous for is its lavish Ramadan celebrations. In 2017, a global news discussion was sparked by placing the world’s tallest Ramadan tent on the hotel’s premises. This highly captivated locals and tourists alike as a point of interest. As such, the luxurious Ramadan celebrations became an annual affair, attracting visitors to the hotel from all corners of the globe.
Carlton Hotels & Suites is success story for its bright delivery of excellent service and hospitality. Expanding a company, the corporation continues to be consistent in delivering excellence in all aspects of operations. The Hotelier Middle East magazine ranked Hosni Abdelhadi, CEO of Carlton Hotels & Suites, 37th among the most powerful people in hospitality industry back in 2019. Such rankings further prove that the company commands influence and leadership in that area.
Carlton Hotels & Suites is designed for the future, in the near and the far. The company has built such a solid base in the Middle East and continues to grow throughout Europe that opportunities for further expansion will not go neglected while, on the other hand, the core element of values – from the very best luxury and comfort to unmatched hospitality, will never be overlooked. Soon enough, in the near future, the Dubai Creek will be a part of the company’s portfolio, another luxurious destination to offer its guests the best of Dubai.
The Carlton Hotels & Suites continues to maintain the very best standards of service to deliver unforgettable experiences for their guests as it expands and develops its presence in the global hospitality map. Rooted in a rich history where the company was born with Dubai rising up as a global city, Carlton Hotels & Suites will remain number one and at the helm of the luxury hospitality scene for many years.
Entrepreneurs
Careem: Your One-Stop Super App for All Things Daily Life in the Middle East
Mudassir Sheikha is a Pakistani-American who, along with Magnus Olsson, a Swede, who was also a consultant at McKinsey & Company before turning an entrepreneur, founded Careem. They started Careem back in 2012 with the aim of solving the transportation problem in the Middle East. Set for corporate car bookings, the app instantly turned out to be a full-scale ridesharing service. Careem’s ride-hailing service garnered considerable mileage in short-span and turned out to be a favourite across the region.
In March 2019, it was Uber that acquired Careem for $3.1 billion, marking yet another mile stone that saw Careem become the very first unicorn from the Middle East. Even after being acquired, Careem’s vision remained crystal clear: creating a platform for a wide array of everyday needs and thus the Super App by Careem. The company didn’t stop at ride-hailing. Careem Now launched in November 2018-food delivery service, and then grocery deliveries with Careem Quik in 2020-offering fast groceries and essentials delivery with its warehouse infrastructure streamlining services. Till 2022, Careem also launched a digital payment service, Careem Pay, transferring money, paying bills and shopping online by ease.
The Careem Super App became all-in-one for its users as it emerged with everything from bike and car rentals to discounts at restaurants and groceries and even payments for bills and online purchases. In 2023, the Super App was spun off as a separate entity as e& (Etisalat) purchased 50.03% of the shares while Uber still owned the ride-hailing business.
The Careem Super App has transformed how users from the Middle East interact with technology. It is yet another application that brings about multiple services under one platform to make life easy for the individual. For example, a user from Dubai can book rides, order food, get groceries delivered, and digital payments all on one application with just a few taps. Therefore, Careem’s integration of so many services has made it a favourite among busy professionals, students, and families alike. Careem is also heavily invested in social impact initiatives. The company has been a pioneering force when it comes to employing female drivers, particularly in traditionally male markets like Pakistan and Egypt, where women drive for Careem, and in Saudi Arabia, where Careem played a big role in helping to empower women to drive when the country ended its ban on female drivers in 2018.
The journey of Careem is not yet over. The company kept pushing the boundaries where it recently launched a “Flexi Ride” feature in Karachi; it allows riders and drivers to set their own prices. Careem Pay digital wallet services are growing with an increasing number of remittance corridors between the UAE and South Asia. In a bid to solidify its presence in the region, Careem recently announced plans to expand further. From ride provision to money transfers, Careem continues to shape the future of tech in the Middle East and across the world.
Conclusion:
From being a ride-hailing service to a super app, Careem has really grown. That’s the vision, right-from revolutionary thinking to moving forward and doing something for daily needs of millions. Its services, with many initiatives for social impact, and continued expansion make Careem all set to become the first-ever “everything app” in the Middle East. Whether it is a ride or a meal, or it is a fast grocery delivery-all those things are found in Careem’s Super App.
Entrepreneurs
CAFU’s Expanding Role in Sustainable Energy Delivery
Rashid Al Ghurair founded CAFU based on his vision in Dubai. He found that there was a need to create an energy delivery solution based on the hectic lives of residents of the UAE every single day. So far, since its inception in all the years, CAFU has focused on direct fuel delivery at customers’ points of consumption instead of wasting valuable minutes and effort needed in using traditional gas stations. Instead, the company directly delivers fuel at its demand using an application on a smart device, parked car, home, or business.
CAFU, which began working since 2018, quickly proliferated across the country with their services spreading across all the big cities of the UAE. The fast growth brought to focus some extremely wide demand for energy solutions made more accessible and convenient, a job for which CAFU was more than ready. In less than two years, the company found themselves in the list of most trusted sources for energy for personal vehicles as well as fleet-holding companies within the UAE.
While CAFU began its business as a fuel delivery service, there is actually plenty of promise for clean energy in the future. Thus, in 2021, the company began the Ghaf Tree Project, an environmentally-friendly effort to restore ecosystems around the UAE. The project aimed to plant a million seeds of the Ghaf tree in barren spots around the country. This bold move reflected the commitment of CAFU toward sustainability in environmental terms and its requirement to go back to the society. However, this is not the end for CAFU’s sustainability. Since interest in EVs is increasing rapidly, the company considered taking up the cause of promoting their usage. In 2023, CAFU launched a prototype of a mobile EV charging vehicle in Canada. The Ford E-Transit van comes with charging stations and a mobile application. That forms part of the vision of making energy delivery accessible to all vehicles, irrespective of whether they use traditional fuels or something else. It’s another good step for the company in its pursuit of greener, more sustainable energy models.
In 2019, CAFU collaborated with Nakheel, to sell fuel to the owners of the boats who stay in Palm Jumeirah. The agreement ensured an increase in its distribution network beyond the road profiles across the land and showed that the company is flexible regarding the nature of the customers. Also, in October 2023, CAFU collaborated with Shell Markets Middle East, and designated Shell as its lubricant of choice. This will ensure that all the customers of CAFU are given good quality lubricants at their doorsteps supplemented by their fuel deliveries; this helps considerably in optimizing the overall service experience.
In 2021, CAFU collaborated with the Quebec-based Institute of Vehicle Innovation to test its mobile EV chargers in Montreal. It will produce valuable insights for further establishment of the new markets of CAFU. The company keeps growing and adheres to innovation, convenience, and sustainability. In accessing and further developing solutions for mobile charging in Canada, CAFU is part of innovations delivering new standards in energy delivery in the 21st century.
CAFU is moving towards the future with emerging technologies and strategic alliances that define it as a global leader in the energy sector. The company will make accessible and sustainable energy solutions for all customers globally, with delivery service from the busy cities of the UAE to the streets of Montreal.
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