Portfolio Review

Other Activities

Acquisitions, mergers, venture capital investments and other business verticals of the Group fall under this category, which also covers the business’ ventures all related aspects.

Co Limited Company which the Group owns a 60% stake in is centered around end-to-end commercial kitchens that serve food solely via digital delivery platforms, in addition to a newly launched cloud shelving vertical. The kitchen business serves as an avenue that facilitates expansion for both Jahez and its restaurant partners, providing restaurants whose physical presence don’t extend beyond certain geographical areas the kitchen facilities needed to grow their business, which in turn helps Jahez penetrate new markets across the Kingdom.

Local restaurants that don’t have more than a handful of branches or lack the resources to expand on their own can count on Co to help them reach a far bigger market than they otherwise would. The Group benefits from these partnerships by more consumers signing up for Jahez in those locations.

The reporting period saw the addition of an exciting new vertical to Co, which, together with the cloud kitchen business, serves to support and add value to a number of the Group’s major businesses. Please see below.

Highlights of 2023

	Number of locations operating end of 2023	YoY change %	Total active
Cloud kitchen	13	62.5	11
Cloud shelving	15	66.67	14

Cloud Shelving

During 2023, Co branched out to cloud shelving, which saw the business open up dark stores that serve the main Jahez platform as well as PIK and Blu which in turn helped the growth of our e-commerce portfolio along that of the food business. Any merchant partner of PIK or Blu that lacks the physical space to store their goods can reach out to Co shelfing for their dark store needs.

Currently Co shelfing is just one of no more than three or four players that offer both cloud kitchen and shelving services. This year, 62.5% of the revenue (as of December) came from the kitchen business while the remaining 37.5% was generated by the shelving vertical.

Growth and Expansion

In addition to Jahez suite of apps, Co works as a facilitator not only for Jahez, but for the industry as a whole. As of December 2023, the Company has 13 live locations, two of which exist as cloud shelving spaces only. Co plans to expand in more cities in 2024, including a micro fulfillment center to help growth plans in the shelving and fulfillment vertical in Riyadh is also on the cards.

In the coming year, Co will also tap into e-commerce services that could potentially be offered on our platform to further our growth ambitions.

Customer Retention

Co operates on a revenue model based on commissions, and we provide marketing support through aggregators to enhance brand sales as part of an ongoing strategy to work in close cooperation with merchant partners to improve their own sales.