Danube Online platform, mobile apps allow delivery in 5 cities: MD

Danube Online platform and mobile applications allow the company to deliver orders in five cities across the Kingdom, Majed Al Tahan, Co-founder and MD, told Argaam in an exclusive interview.

He added that the company is planning to expand its services across various merchants, noting it has successfully recorded steady growth in the number of subscribers, which reflected positively on the group’s sales volumes and revenue.

The company’s market outlook is positive, as the grocery market is expected to see a compound annual growth rate (CAGR) of 5.5% from SAR 57 billion to SAR 73 billion over the next five years, Al Tahan also said.

On plans to expand outside Saudi Arabia, Al Tahan said that Danube Online is not planning to launch its service overseas, but would rather focus on strengthening its position as the operator of the Gulf region’s best e-commerce platform.

The company is closely monitoring the current situation and taking the necessary precautionary measures. However, it is too early to predict the coronavirus impact on sales.

Here’s the full interview with Al Tahan:

Q: When was Danube Online platform launched? What are the markets covered and the services provided?

A: Danube Online and mobile apps are considered among the most prominent marketing channels for Danube stores in Saudi Arabia. The platform was launched in 2017, as the first of its kind e-commerce program in the region. The online platform and mobile apps allow Danube to deliver orders in five cities across the Kingdom. Danube Online is also planning to expand its services, in line with merchant distribution.

Danube Online is not planning to launch this service overseas. It rather aims to strengthen its position as the operator of the Gulf region’s best e-commerce platform and seize available investment opportunities to achieve this target.

Danube App is available on Play Store and App Store. It is user-friendly as customers can check product details, carts, and final prices ahead of setting the delivery address. The App also allows various payment options, including cash on delivery. The company urges all customers to use online payment options, such as Apple Pay and credit cards.

The App also offers the Danube Kitchen feature to introduce various cuisines. Danube Online platform won several prestigious awards in 2019, mainly the digital transformation awards from IDC.

Q: How do you see shopping rates through the App? How many transactions were performed? And what is Danube Online share in total sales/revenue of Danube company by the end of 2019?

A: We are a private company, and I cannot disclose these figures. However, Danube achieved great success in terms of increasing its customer base and revenue growth.

Danube Online has successfully recorded steady growth in the number of subscribers, which reflected positively on the group’s sales volume and revenue. Women accounted for over 60% of online shoppers. In 2019, the App was downloaded more than 2 million times.

Our success depends on meeting customer demand in one place. We also offer customers various options to fulfill their needs.

Q: What is the shopping applications’ market share in the Saudi retail market?

A: The online retail market in Saudi Arabia has become more prominent. In 2017, the online retail market size hit SAR 7 billion ahead of reaching SAR 11.7 billion in 2019. The market size is expected to reach SAR 39.4 billion in 2024. The retail market size via mobile apps was estimated at SAR 5.2 billion in 2019, and is expected to hit SAR 22.5 billion in 2024. BinDawood Holding, Danube Online and BinDawood Online platforms are forecast to achieve a great success.

Q: Do you think that the spread of COVID-19 will lead to increasing sales of e-applications?

A: I think it is too early to give an estimated sales revenue figure at this stage.

Q: What about your expectations regards retailers in Saudi Arabia?

A: Consumer spending is expected to hit $280 billion in 2019, or SAR 33,000 of GDP per capita, which is expected to reach SAR 39,650 by 2024, with a growth rate of 3.5%.