April 1, 2017
Ecommerce

E-Commerce in Kuwait and the Gulf: A New Business Space Without Limits!

This year, we stand before the dynamic landscape of e-commerce in Kuwait and the Arabian Gulf as an integral part of the global economy. A clear and significant shift is evident in the online consumer behavior, which has grown exponentially and achieved remarkable leaps over the past few years.

In Kuwait, the entrepreneurial ecosystem has embraced this concept, which is no longer relatively new. Most aspiring entrepreneurs have sought to enter this space as new players and competitors offering services through the e-commerce model.

Kuwait stands as one of the key Gulf pillars in this field, witnessing substantial growth and development. Kuwaiti e-commerce ventures have achieved remarkable success, attracting the attention of major global investors. These projects have been recognized as lucrative investment opportunities due to their well-designed business models, technical specialization, and the marketing intelligence demonstrated by their teams.

One notable success story in Kuwaiti e-commerce is the famous Talabat platform, which allows users to order from a wide range of restaurants. A few years after its establishment, Talabat was acquired by the German giant Rocket Internet for $170 million. Addressing a gap in Talabat’s initial business model—where users couldn’t order from restaurants or cafes that didn’t offer delivery—Carriage emerged as a successful company with a different approach. Carriage focused on handling delivery and fulfillment for clients anywhere in the Gulf. This model allowed more restaurants, including those unwilling to provide delivery services themselves for cost-saving reasons, to join the platform. Due to this success, Carriage signed an acquisition agreement with Delivery Hero, one of the world’s leading companies in online food ordering and delivery services.

On another front, e-commerce demonstrates its importance for businesses of all sizes—small, medium, and large—through the effectiveness of mobile applications supporting these businesses. These apps provide seamless and convenient purchasing experiences anytime, anywhere, bypassing the constraints of traditional store hours. Take Cavaraty as a prime example. This app serves as an electronic extension of Cavaraty’s website, a Kuwaiti brand specializing in accessories for phones and smart devices. The Cavaraty app has streamlined purchasing and inventory updates, benefiting both the company and its customers with greater speed and accuracy.

In addition to such examples, many well-known mobile and smart device apps used in our daily lives, by both individuals and businesses, embody the e-commerce model while adapting to the rapidly evolving customer behavior.

E-commerce proves to be the smartest and most efficient model, addressing societal needs and making life easier for both consumers and business teams. It’s remarkable to reflect on how consumer behavior has shifted—from reluctance to share banking and personal information just a few years ago to now viewing such actions as essential to enjoy the benefits offered by e-commerce.

If you are considering starting your own venture, e-commerce should occupy a significant part of your strategy! It is not just the future—it is the present we live in today. The indicators for the rise of startups in the Arab region are positive, aligned with the ongoing technological expansion across the area.

Faisal Karkoh
Founder & CEO

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