As the scorching Middle East summer months approach, the blazing sun can make it unbearable to be outside, with temperatures peaking up to a sweltering 50°C. As a result, many people opt to remain indoors in the cool comfort of air-conditioned homes. This trend can lead to a surge in demand for online delivery services, as consumers look for hassle-free and convenient ways to purchase groceries, food, and other essential items without having to brave the heat outside.
While the increased demand for Q-commerce services during the summer months presents a promising opportunity for businesses to boost their sales revenue, it may bring about potential challenges. For instance, high temperatures and humidity can negatively impact goods, vehicles, and drivers, making it more difficult to ensure timely and efficient deliveries.
To meet the spike in demand, brands must find innovative methods to ensure that they have sufficient inventory levels, manage their supply chain efficiently, and optimise their delivery routes. Implementing cutting-edge tech solutions to optimise delivery processes can not only result in happier couriers but also bridge the gap caused by hot weather between businesses and customers.
Smart delivery schedules for couriers
One way to further reduce delivery times is by utilising Artificial Intelligence (AI) and slot scheduling by planning courier schedules more effectively. The refined algorithm can accurately predict the number of orders for each dark store and calculate the required number of courier partners to deliver all orders on time. Historical data can be used to predict the required hours for couriers to deliver orders at an average speed, allowing AI to plan appropriate slots for each week. Intelligent slot scheduling ensures an optimal number of couriers are available each day, limiting overhead costs and securing enough orders for each courier’s shift. For instance, weekends and weekday evenings are frequently high-volume times, so more scheduled slots are added for these periods.
Better delivery routes for seamless deliveries
Data-driven algorithms are key to maintaining a high quality of service while improving delivery routes. Technology can help brands to identify areas where delivery times are much longer than planned and determine whether it’s most efficient for cyclist couriers or partner drivers to make deliveries to these areas.
Another common problem affecting delivery times is the addition of complications like busy bridges, climbing flights of stairs or other time‑consuming obstacles. Hence the algorithms help businesses divide delivery zones into smaller, more efficient regions to minimize these challenges, streamlining deliveries. This gives couriers and customers a better experience.
Multi-order planning for higher earnings
Brands can implement technology to effectively manage multi-order planning during peak demand times to enhance customer experience and reduce order fulfilment times. This is especially crucial for dark stores that frequently experience a high order volume. Improved multi‑order distribution among couriers makes their shifts more lucrative while boosting the company’s bottom line and keeping customers happy. The UAE is currently ranked as the 28th largest e-commerce market in the world, with online sales expected to continue growing in the coming years. With the increasing demand for efficient delivery services in the region, optimising courier routes using algorithms could play a key role in meeting customer expectations and driving business growth.
Delivery promise and surge pricing to regulate demand
According to market research company Statista, the number of Q-commerce users in the UAE is expected to reach an impressive 3.20 million users by 2027. To meet the growing demand for fast delivery, companies can manage by changing their delivery promise, ensuring that it aligns with their delivery capabilities. This not only enables companies to meet customer expectations but also provides customers with a clear understanding of what to expect, leading to higher satisfaction rates.
Surge pricing algorithms can also be a useful tool to help manage supply and demand during peak times. This algorithm sets a predetermined multiplier on the cart amount and shipping charges, increasing the order price based on demand, and also increasing the delivery time. The surge pricing algorithm has been improved with more nuanced analytical data, ensuring accurate activation and precise delivery estimates.
When Delivery Speed is the Question, Tech is the Answer
The bottom line is, in today’s rapidly evolving business landscape, fast delivery has become a key determinant of success. For online delivery businesses looking to thrive in the UAE’s e-commerce and q-commerce markets, embracing tech innovations is the way forward. By leveraging cutting-edge technologies, rapid delivery services can become more reliable and efficient. These innovative solutions have the potential to improve unit economics, ensure consistent fast order fulfilment, and enhance the overall experience for consumers and couriers, allowing them to combat harsh temperatures with confidence.
Max Avtukhov is the CEO and co-founder of Yango Deli Tech
