Fenix Launches 10-Minute Grocery Delivery in Abu Dhabi

Fenix Expands Operations to Include Rapid Grocery Delivery

Fenix, a shared micromobility company headquartered in the United Arab Emirates, is broadening its service offerings beyond personal transportation. The company is now leveraging its fleet of electric scooters and logistical infrastructure to facilitate the delivery of goods.

Launch of F10 on Reem Island

On Tuesday, Fenix announced the commencement of F10, a 10-minute fresh grocery delivery service. This new service will initially operate on Reem Island, a highly populated, mixed-use area located off the coast of Abu Dhabi.

Integrated Fleet Management

The F10 service will utilize scooters already deployed as part of Fenix’s existing shared mobility network for deliveries. Delivery personnel will function as a shared resource, alternating between fulfilling rapid grocery orders and managing battery swaps for the e-scooters.

The company is developing a unified platform to oversee both the fleets and the associated services efficiently.

Addressing Profitability Challenges in Micromobility

The shared e-scooter industry is relatively nascent and has yet to demonstrate substantial profitability for many operators. This is largely attributable to the limited lifespan of the vehicles and the expenses associated with battery replacement personnel.

Fenix’s diversified business strategy represents an innovative approach to maximizing the value of its existing assets – both hardware and its workforce – while simultaneously tapping into a rapidly expanding market.

Market Growth Potential

Market research firm Technavio projects the quick-commerce market will experience growth of nearly $632 billion over the next three years.

Strategic Dark Store Locations

From a logistical standpoint, Fenix appears to have identified a viable strategy. The company’s “dark stores” – compact, private retail spaces – are strategically positioned around Reem Island.

Each dark store serves a substantial catchment area within a limited delivery radius, as explained by Jaideep Dhanoa, co-founder and CEO of Fenix. The precise number of dark stores on the island was not disclosed.

Synergies Between Services

“The dark store also functions as a distributed charging hub for our swappable battery e-scooter operations,” stated Dhanoa. “This allows us to share real estate costs between the two businesses and enhance the efficiency of our e-scooter operations through a more widespread charging network.”

Rapid Order Fulfillment

Fenix’s full-time employees, all of whom are company stakeholders, are trained to process orders – accepting, picking, and packing items – within a two-minute timeframe.

Riders then have a maximum of eight minutes to deliver the goods to the customer. Future investment in robotic automation for grocery retrieval could further accelerate this process and reduce the potential for human error.

The Importance of Urban Density

The feasibility of such rapid delivery is heavily reliant on urban density, which was a key factor in Fenix’s decision to launch on Reem Island.

The island, one of the few free zones in the city allowing foreign property ownership, is home to approximately 100,000 residents and features a mix of residential, commercial, and retail spaces.

Scalability and Market Potential

“A dense population will always represent a viable market for F10,” Dhanoa emphasized.

Funding and the Abraham Accords

The expansion into grocery delivery was partially financed by a recent, undisclosed funding round from existing investors, including Maniv Mobility, an Israeli venture firm.

Maniv Mobility previously invested $3.8 million in Fenix’s seed round last November and also backed electric mobility company Revel. This investment marked the first instance of an Israeli firm investing in a UAE-based business, signifying the positive impact of the Abraham Accords in fostering normalized relations between the two nations.

Dhanoa indicated that launching F10 did not necessitate substantial capital, “given the unique synergies with our existing micromobility business.”

App Availability and Promotional Offer

The F10 application is available for download on both the Google Play Store and the iOS App Store. To incentivize adoption, Fenix is currently offering new users a free first order, up to a value of AED 50 (~$14 USD).