Mr Mandoob plans direct listing on Nomu soon, holds 8% market share: Founder

Logo of Mr Mandoob application

Hammoud Al-Ghosn, the founder of Mr Mandoob application, said the company plans a direct listing on Nomu-Parallel Market very soon.
 
Updates on the hired advisor will be disclosed shortly, he added. 
 
The company obtained the approval of the Capital Market Authority (CMA) to mandate a financial advisor through a SAR 60 million investment round in a major and promising market in Saudi Arabia, Al-Ghosn told Argaam in an exclusive interview.
 
The company’s governance plans since inception contributed to reaching the current stage. Mr Mandoob is distinguished among peers as a closed joint stock company by its supportive board of directors that leads top management through a clear strategy and plans to enhance the company’s presence.
 
Elsewhere, Al-Ghosn said the behavior of most delivery firms weighed on restaurants’ profit margins.
 
Delivery firms should reconsider their business model, which led many restaurants to shut down, he stated, adding that “everyone believes that delivery firms make profit only through restaurants, but this is untrue”.
 
The commission charged from restaurants exceeded 25% in some delivery firms, very far from a win-win situation. Recently, delivery app commissions from restaurants have become very high and annoying.
 
Therefore, it is time for the market regulator to intervene and map out clear policies, under which no extra fees are charged on meal prices, Al-Ghosn added.
 
Mr Mandoob made several breakthroughs in 2022, as the app sales surged 500% compared to 2021. The company also garnered an 8% market share in the Kingdom.
 
Mr Mandoob will maintain its key model with no charges on meal prices, as the company seeks to build a sustainable relationship with customers and stores, Al-Ghosn affirmed.
 
This business model delivers profit for stores and ensures a robust return for the company. It established a sustainable relationship with stores by charging no extra fees and with customers by ensuring a high-quality service.
 
Customers today are aware that most delivery firms adopt a business model that seeks unilateral profit without building partnership relations with stores and customers amid an attractive return for all parties.
 
Al-Ghosn added that the current strategy is very unfavorable. It weighed negatively on stores, as many decided to exit the market due to high costs and additional fees from some delivery companies.
 
He called on delivery companies to upgrade the delivery market, by taking Mr Mandoob as a model in their strategy during the coming period, especially as the Kingdom has a promising delivery market that represents part of Saudi Vision 2030 strategy.
 
Al-Ghosn explained that the company focuses on values and seeks to achieve benefits for both parties by not increasing prices. He added that the business model focuses on directing customers through the app to the participating stores at fixed fees.
 
The company added features that helped the store rank among the top stores through the app, cashback service, delivery fee sharing as well as store communication with customers via Mr Mandoob.
 
The firm is currently working to cut costs on the app by seeking the help of sub-companies specialized in e-payments and logistics services.
 
The app founders and senior management never hesitate to implement the company's plans to help Mr Mandoob become the permanent app for customers and stores and the best in terms of financial returns.
 
The company started from the Egyptian market, through which it recorded strong results, and plans to expand in the GCC and Arab world, Al-Ghosn concluded.