All over the world, an increasing number of global offline players are now acquiring, partnering or investing in online start-ups.
In September this year, for example, ServiceMarket.com announced the successful close of a $4 million funding round by AddVenture and Emaar Industries & Investments. While the investment makes strategic sense for us, what is more interesting is the entry of Emaar into the digital start-up space.
Such forays for offline businesses are gaining traction in the Middle East because they unlock many new opportunities. Here are the main reasons behind this emerging trend:
Digital marketplaces are the way forward
Online marketplaces have disrupted the way people find and access services today. Rather than spending days shortlisting the right service in your area and making calls to negotiate rates, you can easily book a service online with a couple of clicks.
That's why digital marketplaces have been growing in popularity and more customers are choosing to make online transactions. While the overall offline market has remained stagnant over the past year, online bookings of home services have soared in the UAE.
By jumping onto the online bandwagon, traditional businesses have a chance to not only retain their customers but also capture new clients looking for ways to buy services and products online.
Online transactions already dominate many sectors. It’s estimated that 50 to 80 per cent of the services related to travel, flights and hotels are found and booked online in developed markets. On the other hand, less than 1 per cent of home services are bought online in the GCC region, which means it is the ideal time for offline businesses to gain first-mover advantage.
It extends services
Another benefit of joining hands with online start-ups is it allows an offline business to extend its existing services or offer new options related to its products. For example, having acquired TaskRabbit in the US, Swedish firm Ikea now offers furniture assembly services, sought after by many of its customers. With this acquisition, Ikea has saved its customers the trouble of looking for furniture assembly services elsewhere, resulting in a better customer experience. Similarly, US retailer Walmart partnered with US home services platform, Handy.com, to allow its online customers to add installation and assembly services to its digital carts.
_______
Read more:
UAE start-up ServiceMarket.com raises $4m in latest funding round
Generation start-up: e-commerce firm souKare muscles in on the healthcare sector
_______
It helps understand customers
If you are selling a product and looking for insights into how it is being used, then the best way to do so is to be directly involved in the services that revolve around your product. Last year, global consumer goods company Unilever invested in Helpling, a German home-cleaning platform. Since Unilever sells many cleaning products, any insight into consumer behaviour such as how often and on what days people need cleaning services, can prove very useful.
In June, The Home Depot, an American home improvement supplies retailer company that sells tools and construction products, invested in Homee, a US servicing app. Another example of this trend is the strategic investment in Zipjet, a laundry and dry cleaning app, founded in Berlin, by some of the leading producers of detergents and washing machines, including Henkel and Bosch home appliances. Home services companies also look to capture insights on consumer preferences such as when they like to clean, what they want when they move, and what types of parts they need for handyman or plumbing services. All of this data is useful for the manufacturers of these products, the suppliers of such services, and can even help in resource planning.
Such investments, acquisitions and partnerships can unlock a wealth of consumer data, which can drive value to the bottom line in many ways. Firstly, consumer insights allow companies to cut their operational and other costs by identifying aspects of the products and services that are inconsequential to customers. Secondly, companies can use insights to refine their target audience and improve marketing campaigns. Thirdly, companies can find out what else their customers are looking for and fill the gaps by improving existing products and services or launching new ones.
________
Read more:
Online laundry service attends to UAE’s pressing needs
MaidMe: the app that lets you rate your maid
_________
Offers new ways to boost sales
Online marketplaces provide traditional businesses with effective channels to increase the sales of their products and services. Unilever, for example, offers bleaches and washing powders that complement Helpling's ecosystem, where these cleaning products can be potentially used and promoted. In the same way, The Home Depot is in an ideal position to improve the sales of its tools and construction products through Homee.
A way to 'Uberise' services
Everybody knows that Uber is disrupting the car ownership market, and many experts believe consumers may not need to buy cars in the future. This emerging trend, popularly known as "uberisation", is not only limited to the car market - similar disruptions are also taking place in other industries such as home services marketplaces.
Today, manufacturers of cars, washing machines and cleaning products are all eyeing the space in case it disrupts their business. Many realise that having an online presence is becoming an absolute necessity for survival. Already, the UAE's Washmen, a laundry app based on the Uber model, has declared war on washing machines. By making the process around laundry seamless through technology, Washmen hopes to render the home appliances obsolete. It could be that you no longer need to buy washing machines, vacuum cleaners, or cleaning products in the future, and instead use an Uber-like home service provider.
Traditional players that do not adapt soon might struggle to survive in an 'uberised' digital world. For many companies, the only viable way to maintain their position is to invest in online startups operating in the same space. The sooner offline businesses start delivering services online, the better chances they will have of staying ahead of their competitors.
Bana Shomali is the founder of ServiceMarket.com - a home services marketplace based in Dubai
How to vote
Canadians living in the UAE can register to vote online and be added to the International Register of Electors.
They'll then be sent a special ballot voting kit by mail either to their address, the Consulate General of Canada to the UAE in Dubai or The Embassy of Canada in Abu Dhabi
Registered voters mark the ballot with their choice and must send it back by 6pm Eastern time on October 21 (2am next Friday)
MATCH INFO
CAF Champions League semi-finals first-leg fixtures
Tuesday:
Primeiro Agosto (ANG) v Esperance (TUN) (8pm UAE)
Al Ahly (EGY) v Entente Setif (ALG) (11PM)
Second legs:
October 23
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Tu%20Jhoothi%20Main%20Makkaar%20
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ELuv%20Ranjan%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ERanbir%20Kapoor%2C%20Shraddha%20Kapoor%2C%20Anubhav%20Singh%20Bassi%20and%20Dimple%20Kapadia%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
How to get exposure to gold
Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.
A far easier option is to invest in a low-cost exchange traded fund (ETF) that invests in the precious metal instead, for example, ETFS Physical Gold (PHAU) and iShares Physical Gold (SGLN) both track physical gold. The VanEck Vectors Gold Miners ETF invests directly in mining companies.
Alternatively, BlackRock Gold & General seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. Its largest portfolio holdings include gold miners Newcrest Mining, Barrick Gold Corp, Agnico Eagle Mines and the NewMont Goldcorp.
Brave investors could take on the added risk of buying individual gold mining stocks, many of which have performed wonderfully well lately.
London-listed Centamin is up more than 70 per cent in just three months, although in a sign of its volatility, it is down 5 per cent on two years ago. Trans-Siberian Gold, listed on London's alternative investment market (AIM) for small stocks, has seen its share price almost quadruple from 34p to 124p over the same period, but do not assume this kind of runaway growth can continue for long
However, buying individual equities like these is highly risky, as their share prices can crash just as quickly, which isn't what what you want from a supposedly safe haven.
if you go
The flights
The closest international airport to the TMB trail is Geneva (just over an hour’s drive from the French ski town of Chamonix where most people start and end the walk). Direct flights from the UAE to Geneva are available with Etihad and Emirates from about Dh2,790 including taxes.
The trek
The Tour du Mont Blanc takes about 10 to 14 days to complete if walked in its entirety, but by using the services of a tour operator such as Raw Travel, a shorter “highlights” version allows you to complete the best of the route in a week, from Dh6,750 per person. The trails are blocked by snow from about late October to early May. Most people walk in July and August, but be warned that trails are often uncomfortably busy at this time and it can be very hot. The prime months are June and September.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Bio:
Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
Favourite place to visit: London
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ETuhoon%0D%3Cbr%3E%3Cstrong%3EYear%20started%3A%20%3C%2Fstrong%3EJune%202021%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%20%3C%2Fstrong%3EFares%20Ghandour%2C%20Dr%20Naif%20Almutawa%2C%20Aymane%20Sennoussi%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ERiyadh%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3Ehealth%20care%0D%3Cbr%3E%3Cstrong%3ESize%3A%20%3C%2Fstrong%3E15%20employees%2C%20%24250%2C000%20in%20revenue%0D%3Cbr%3EI%3Cstrong%3Envestment%20stage%3A%20s%3C%2Fstrong%3Eeed%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EWamda%20Capital%2C%20Nuwa%20Capital%2C%20angel%20investors%3C%2Fp%3E%0A
Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
- Paul McCartney
- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
- Joan of Arc
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
