Saudi Arabian logistics company Khatawat Mubdiah is significantly improving its delivery operations through a new partnership with Keeta, a subsidiary of Meituan. This collaboration, announced on April 17, 2024, focuses on leveraging digital tools to boost delivery efficiency and rider income. The company, based in Saudi Arabia, aims to contribute to the nation’s Vision 2030 goals of economic diversification and digital transformation.
Prior to the partnership, Khatawat Mubdiah faced common challenges in the rapidly growing delivery sector, including low rider productivity and limited operational oversight. These issues hindered the company’s ability to scale and provide consistent service. The integration with Keeta’s technology is intended to address these pain points and position Khatawat Mubdiah for sustained growth.
Transforming Delivery Operations with Technology
Khatawat Mubdiah’s previous operational model resulted in riders completing fewer than 10 orders per day. This was largely attributed to a lack of real-time visibility into order locations and an inefficient system for assigning deliveries. The company recognized the need for a more sophisticated approach to optimize its fleet and enhance the overall customer experience.
The partnership with Keeta provides access to advanced order distribution algorithms, structured performance monitoring systems, and comprehensive operational dashboards. According to Dr. Lina Khaled, General Manager and Co-founder of Khatawat Mubdiah, the goal is to ensure sustainable growth and fair compensation for riders. This aligns with broader efforts in Saudi Arabia to improve labor standards within the gig economy.
Increased Rider Productivity and Fleet Expansion
The initial results of the Keeta integration have been substantial. Rider productivity has increased by over 50%, with the average number of completed orders per day now exceeding 15. This improvement is directly linked to smarter route planning and more efficient order allocation.
Additionally, the partnership includes operational training programs, regular performance reviews, and streamlined invoicing processes. These initiatives aim to improve accountability and professionalism within the rider fleet. Khatawat Mubdiah has already consolidated a team of over 50 riders under the new model and is actively recruiting.
The company plans to hire more than 100 additional riders in the coming months, including talent from international markets. This expansion reflects the growing demand for logistics services in Saudi Arabia and Khatawat Mubdiah’s confidence in its ability to meet that demand. The influx of international workers could also introduce new best practices to the local supply chain.
Supporting Saudi Vision 2030
Khatawat Mubdiah’s success story is seen as a positive example of how Saudi businesses can embrace digital transformation to achieve sustainable growth. Saudi Vision 2030, launched in 2016, prioritizes diversification away from oil, with a strong emphasis on developing the non-oil sectors, including e-commerce and logistics.
Alex Wei, Logistics General Manager of Keeta Middle East, highlighted the company’s pride in supporting Khatawat Mubdiah’s growth and contributing to the improvement of the delivery experience for both riders and customers. The Ministry of Transport and Logistic Services has also been actively promoting the adoption of technology within the logistics sector to enhance efficiency and competitiveness.
The company’s focus on rider welfare and operational efficiency is expected to attract further investment and partnerships within the Saudi logistics landscape. This model could serve as a blueprint for other local delivery companies seeking to modernize their operations and improve their bottom line.
Looking ahead, Khatawat Mubdiah will continue to integrate Keeta’s technologies and expand its rider network. The company has not specified a timeline for achieving full operational scalability, but is expected to announce further expansion plans by the end of 2024. Monitoring the impact of the international rider recruitment and the long-term sustainability of the increased productivity will be key indicators of the partnership’s success.
