WORLDEF Istanbul 2026 - Upcoming Event

Register Now

Saudi Arabia to Enforce National Address Requirement for Parcel Deliveries Starting January 2026

The Transport General Authority (TGA) of Saudi Arabia will make it mandatory for all parcel deliveries to include a national address starting from January 2026, in a bid to improve logistics and delivery services. This new regulation aims to enhance delivery accuracy and efficiency, benefiting both individuals and businesses.

From January 1, 2026, all parcel shipments within Saudi Arabia will not be accepted by delivery companies unless they include a valid national address. This new regulation is designed to streamline logistics operations across the Kingdom and improve service quality.

The TGA emphasized that both individuals and businesses must register their national addresses before the policy takes effect. The national address will be a key component of the new delivery system, ensuring that shipments reach their correct destinations.

TGA’s Goal: Efficient Parcel Deliveries

The TGA stated that this move aligns with the broader goals of the National Transport and Logistics Strategy. By improving location accuracy, the new regulation is expected to enhance logistics efficiency, support e-commerce growth, improve government services, and enable public entities to provide better services to beneficiaries.

Individuals can register their national address through platforms such as Absher, Tawakkalna, Sehhaty, and SPL. The TGA aims to ensure that all parcels are delivered accurately and efficiently, further boosting Saudi Arabia’s growing logistics and e-commerce sectors.

Shein Opens a Large Logistics Center in Poland

Fast fashion and e-commerce giant Shein announced that it has put into operation a large-scale logistics center near the city of Wrocław in Poland. While the new facility is positioned as the company’s main operational hub in Europe, it also reflects the tendency of Chinese e-commerce platforms to shift their logistics activities to Europe in order to adapt to changing trade conditions.

According to a statement made by Shein, the new logistics center will cover an area of approximately 740,000 square meters once it reaches full capacity. Equipped with robotic systems and automated sorting lines, the facility aims to enable faster processing and dispatch of high-volume orders across Europe.

It Will Become Shein’s Main Logistics Hub in Europe

The company stated that the center is planned to operate at full capacity by the end of this year. At this stage, it is expected to create approximately 5,000 new jobs, including logistics, warehouse operations, technology, and support services. This facility in Poland will operate as Shein’s main logistics hub in Europe. At the same time, brands and sellers in Poland and other European countries will also be able to use this center to offer their products for sale across Europe via the Shein platform.

Working With More Than 170 SMEs in Poland

Shein emphasized that it is carrying out extensive cooperation with local business partners within the project. The company announced that it is working with more than 170 small and medium-sized enterprises in Poland, primarily in transportation and packaging services.

It was stated that these collaborations aim to integrate the new logistics center into the regional supply chain and support the local economy. Shein has recently placed greater emphasis on partnering with local service providers in its investments outside Asia. While the company did not disclose the total investment amount made for the facility in Poland, it described this move as a long-term strategic investment aimed at the European market.

Chinese Companies Rented 200,000 Square Meters of Warehouse Space in the UK

Shein’s move is considered part of a broader trend in which Chinese e-commerce companies are opening warehouses and distribution centers across Europe. Earlier this year, it was reported that Chinese companies rented approximately 200,000 square meters of warehouse space in the United Kingdom alone.

For cross-border e-commerce platforms, establishing storage and distribution infrastructure within Europe has two main advantages. The first is that delivery times are significantly shortened thanks to products being shipped from Europe instead of Asia. The second is preparation for regulations aimed at abolishing certain customs duty exemptions applicable to low-value shipments. Storing products within the European Union reduces customs processes and increases delivery reliability. Rival platform Temu also announced last month that it was expanding its European delivery network through new partnerships.

“The New Logistics Center Strengthened the Company’s Commitment to the Region”

Leonard Lin, President of Shein Europe, Middle East and Africa, stated that the new logistics center strengthened the company’s long-term commitment to the region. Lin noted that thanks to this investment, faster and more reliable delivery services will be provided to customers in Europe. Lin also emphasized that the center offers significant opportunities for European sellers and that local brands will be able to reach customers across the continent more easily by using Shein’s infrastructure.

France to Open and Inspect Every Parcel from Shein as Crackdown on Chinese E-Commerce Escalates

Yango and Noon Launch Autonomous Delivery Service in Dubai

Yango Group, a global leader in technology-driven logistics, and Noon, the region’s leading homegrown e-commerce platform, have teamed up to expand last-mile deliveries across the UAE and, eventually, the entire GCC region. This collaboration begins with Noon Minutes customers in Dubai, transitioning autonomous robot deliveries from a pilot phase to a fully operational service. The scaling of the service will rely on real-time data, performance metrics, and customer feedback.

Autonomous Delivery Option Available on the Noon App

This launch marks a new chapter for both companies, as they introduce innovative solutions to improve urban logistics. Yango Autonomy’s fully electric robots have started fulfilling quick-commerce orders in Dubai’s Sobha Hartland community. Customers can now select the autonomous delivery option directly during checkout on the Noon app, track the robot’s journey in real-time on the map, and unlock the robot’s secure compartment upon arrival using their smartphones.

Expanding Autonomous Delivery Across the GCC

Although the service is initially limited to Dubai, both companies plan to scale the autonomous delivery service across the wider GCC region. The rollout will be based on operational data, customer feedback, and integration with the region’s infrastructure.

Ali Kafil-Hussain, Chief Business Officer at Noon, emphasized the importance of integrating autonomous technologies into the company’s last-mile delivery network. “Partnering with Yango Group allows us to offer a future-ready delivery option to our customers. Autonomous robots not only increase delivery capacity during peak times but also help reduce emissions, alleviate congestion, and provide a modern, contactless solution for consumers accustomed to digital solutions.”

“Our Robots Have Proven Reliable in Dubai’s Streets”

The autonomous robots are fully electric and powered by Yango’s AI-based navigation and routing technology. These robots independently plan their routes, navigate obstacles, and yield to pedestrians. Having already completed over 1,500 kilometers of fully autonomous travel in previous Dubai pilots, these robots have demonstrated their operational efficiency in real-world residential environments.

Nikita Gavrilov, Regional Head of Yango Tech Autonomy, stated, “Our robots have already proven reliable in Dubai’s streets. The next step is to scale this service and ensure it seamlessly integrates into daily operations.”

Dubai’s Commitment to Smart Mobility Solutions

This initiative aligns with Dubai’s vision of becoming a global hub for digital innovation and smart city infrastructure. With approval from the city’s Roads and Transport Authority (RTA), Yango’s autonomous delivery robots are authorized to operate on public walkways and within residential areas, reflecting Dubai’s commitment to piloting and adopting innovative mobility solutions.

Islam Abdul Karim, Regional Head of Yango Group Middle East, views this collaboration as a significant step toward making autonomous deliveries a reliable everyday service. “By combining Yango’s AI-powered delivery experience with Noon’s strong e-commerce presence, we are paving the way for smarter mobility and more sustainable digital cities.”

This partnership offers a glimpse into the future of e-commerce and delivery, where AI-powered solutions and autonomous technologies come together to create a smoother, more sustainable urban experience. As the service expands, it will lay the groundwork for similar innovations across the Middle East, with Dubai continuing to play a leading role in the development of future-oriented city infrastructure.

Noon Prepares to Launch 15 Minute Drone Deliveries Across the UAE

Moyu Introduces Stonepacker: A Reusable Stone Paper Box Designed for 25 Cycles

The Netherlands-based sustainable stationery brand Moyu is bringing its environmental mission into the packaging sector with Stonepacker, a reusable shipping box made from stone paper. Designed to withstand approximately 25 reuse cycles and fully recyclable at the end of its lifespan, Stonepacker aims to reduce the e-commerce industry’s heavy reliance on single-use cardboard.

The new packaging solution is integrated with Boxo’s national return network, which allows users to drop off empty boxes at designated points across the Netherlands. Once the box is returned, consumers automatically receive a €3.95 deposit refund, encouraging continuous circular reuse. After each use cycle, the boxes are inspected, cleaned, and prepared for redistribution. Once they reach around 25 uses, they are recycled into new stone paper boxes.

Stonepacker: A Strong Alternative to Single-Use Cardboard

While discussions around packaging waste often focus on plastic, Moyu emphasizes that single-use cardboard also contributes significantly to deforestation, water consumption, and CO₂ emissions. In contrast, Stonepacker uses no trees, water, or bleaching chemicals during production. The company states that producing stone paper generates 94% less CO₂ compared to traditional paper.

Stone paper is made from limestone residues generated during mining operations. These residues are processed into calcium carbonate powder and combined with recycled high-density polyethylene (HDPE) to create a durable, water-resistant material—making it well-suited for reusable logistics applications.

Strong Interest from Retailers and E-Commerce Companies

Moyu founder Roel Schatorjé says demand from retail, logistics, and e-commerce sectors has increased rapidly since the company expanded into packaging solutions. With European sustainability regulations —particularly the EU Packaging and Packaging Waste Regulation (PPWR)— pushing for more reusable systems, many brands have already begun exploring pilot projects.

“One large company asked us, ‘How have we not heard about this before?’ We are open to collaborations with frontrunners who want to structurally reduce their packaging waste,” Schatorjé explains.

Stone Paper Aiming to Become the Standard in Packaging

Founded in 2019, Moyu has reached more than 380,000 users and over 2,500 corporate clients, primarily through its erasable stone paper notebooks. The company reports saving millions of liters of water and reducing CO₂ emissions by replacing traditional paper with stone paper.

With Stonepacker, Moyu aims to extend stone paper beyond stationery. Schatorjé adds: “We envision a future where stone paper becomes the standard material not only for notebooks but also for packaging.”

As global e-commerce volumes continue to surge, reusable packaging solutions like Stonepacker are increasingly viewed as scalable and impactful tools for waste reduction, sustainability efforts, and environmental transformation.

Takealot Launches “Get It Now” Service for Faster Delivery

South Africa’s leading e-commerce platform Takealot has announced its most ambitious step yet in the rapidly growing “quick commerce” segment: a new instant-delivery pilot service called “Get It Now.”

Takealot launched the “Get It Now” service in partnership with Mr D. This feature aims to deliver daily essentials and popular products within minutes by leveraging Mr D’s extensive driver network. The pilot is currently available in selected areas of Cape Town, Johannesburg, and Pretoria. Take alot positions this initiative as a new speed standard in online shopping, aligned with international examples such as Checkers Sixty60, Instacart, and Doordash.

Products Will Display a “Get It Now” Label

According to Take alot, eligible products on the platform will now feature a “Get It Now” label. When customers choose this option, items will be processed through “TakealotNOW” and delivered within minutes via the Mr D app. In this way, delivery times will drop from hours to just a few minutes.

“We Are Building an E-Commerce Ecosystem That Truly Understands What South Africans Want”

The company notes that e-commerce in South Africa has grown rapidly since the pandemic, and customer expectations around delivery speed have changed significantly. Takealot’s Chief Marketing Officer, Karla Levick, stated: “Take alot is not just South Africa’s number one shopping app. Together with Mr D, we are building an e-commerce ecosystem that truly understands what South Africans want. And nothing makes people happier than getting exactly what they need, exactly at the moment they need it—in just minutes.”

Takealot Is Building a Fully Integrated Digital Ecosystem

The launch of Get It Now follows a series of value-added services Takealot has introduced in recent years. Through its loyalty programme TakealotMORE, introduced in 2024, the company offers customers benefits such as unlimited free delivery on Takealot, Mr D, and TakealotNOW; free grocery delivery from Pick n Pay at in-store prices; and complimentary access to News24. These services are offered for less than 4 rand per day. This approach is part of Take alot’s strategy to integrate e-commerce, food delivery, grocery delivery, and instant retail into one unified ecosystem.

Take alotNOW’s Head, Marnus Engelbrecht, stated: “In 2023, we pioneered instant delivery for general merchandise in South Africa with the launch of TakealotNOW. The feedback we received showed that South Africans want instant service not only for groceries but across all product categories. Get It Now takes this vision a step further.”

More Than 1,000 Products Available for Fast Delivery

According to industry experts, if the pilot proves successful, Get It Now may expand nationwide and set a new standard for instant delivery beyond grocery items. With more than 1,000 products already offered under the fast-delivery option, Take alot demonstrates strong positioning in ultra-fast logistics, micro-fulfilment centers, and real-time inventory management. Customers who wish to try the service can check availability and browse eligible products by downloading or updating the Takealot app on Android or iOS.

Takealot Group Transforms South African Logistics with the Launch of TFS

BARQ CCO Almarwani: Our Promise To E-Commerce Is Simple, To Make Logistics Invisible!

BARQ, one of the pioneering companies in last-mile delivery in Saudi Arabia, was founded in mid-2020 during the height of the COVID-19 pandemic. At that time, reliable delivery had become not a luxury but a necessity. From the very first day, its vision was clear: to empower businesses of every size with smart, seamless, and extremely fast delivery solutions. The company aims to transform last-mile delivery in Saudi Arabia and beyond, setting new standards for speed, reliability, and customer satisfaction.

BARQ Chief Commercial Officer (CCO) Mohammed AlMarwani was a guest of WORLDEF E-COMMERCE MAGAZINE. AlMarwani explained what BARQ contributes to e-commerce in Saudi Arabia, the company’s vision, the future of the sector, and the transformation of artificial intelligence.

“Our promise is simple: To make logistics invisible”

BARQ CCO Mohammed AlMarwani gave the following answer to the question “What do you promise to the ecosystem?” regarding the company’s products and services related to the e-commerce ecosystem: “We serve as the bridge between e-commerce businesses and their customers. Through our in-house technologies and dedicated fleet, we offer services ranging from 15-minute express delivery to same-day delivery. Our promise to the ecosystem is simple: To make logistics invisible. That means no delays, no uncertainty; just a smooth, reliable delivery experience. This builds trust and ensures that customers keep coming back.”

“Artificial intelligence is at the core of our operations”

Touching on the impact of artificial intelligence in the sector, AlMarwani then explained the company’s artificial intelligence strategy: “Artificial intelligence has changed the game in last-mile delivery. It enables us to operate faster, smarter, and more sustainably. From predicting demand to finding the fastest routes through city traffic, artificial intelligence has transformed delivery from a basic service into a personalized experience. In a market where speed is everything, artificial intelligence guarantees that orders reach customers exactly on time and at the right place.

For us, artificial intelligence is not just a tool, it is at the core of our operations. We use it to optimize routes in real time, forecast demand and always have the right fleet available, and personalize the delivery experience for every customer. Our strategy is to always stay one step ahead; ensuring that our technology evolves in sync with the expectations of modern e-commerce.”

“Customers will want to receive their orders almost instantly”

BARQ CCO Mohammed AlMarwani also shared his predictions about the future of the sector. Stating, “The future of last-mile delivery will be fast, green, and intelligent. Customers will want to receive their orders almost instantly and will expect transparency at every step,” AlMarwani added: “At the same time, sustainability will play a much bigger role; electric vehicles, smart hubs, and eco-friendly solutions will become the standard. As BARQ, we aim not only to keep pace with this future but also to be the one shaping it.”

“We can deliver in 15 minutes”

Mohammed AlMarwani shared the following information about BARQ’s fast delivery network: “BARQ’s fast delivery network combines two strengths: powerful in-house technology and a fleet we fully own and operate. Our system intelligently assigns orders to the right driver at the right place at the right time. Our presence in major Saudi cities shortens the distance to the customer. This is how we can deliver reliably in as little as 15 minutes.

Our secret is not a single factor; it is many factors working flawlessly together. Our AI-powered platform ensures real-time order assignment and routing. Our strategically placed fleet keeps us close to customers. Our trained, in-house fleet guarantees accountability and consistency. When you put all this together, delivering within two hours—or even just 15 minutes—becomes not only possible but standard for BARQ.”

Obstacles and challenges in fast delivery in Saudi Arabia

According to the information provided by Mohammed AlMarwani, the obstacles and challenges in fast delivery in Saudi Arabia are as follows: “Saudi Arabia is a unique and dynamic market. On one hand, there are rapidly growing cities with very high demand for speed, and on the other hand, vast distances and infrastructure challenges that make consistency harder to achieve. Add to this the traffic during peak hours and the challenges of scaling fleets, and the picture becomes clear. However, as BARQ, we see these challenges as opportunities; opportunities to invest in smarter systems, develop innovative solutions, and raise the standards of fast delivery…”

About Mohammed Almarwani

Mohammed Almarwani brings a wealth of international experience to his role as Chief Commercial Officer at BARQ, one of Saudi Arabia’s leading technology/logistics companies. Before joining BARQ, Mohammed achieved significant success in his intercontinental career in public relations, brand management, marketing, and high-value commercial negotiations.

Throughout his global career, he designed and implemented strategic initiatives that increased brand awareness, expanded market share, and built profitable partnerships. This diverse background gives him a unique cross-cultural perspective in overcoming challenges; blending storytelling expertise, brand-building competence, and negotiation skills to ensure sustainable business growth. Mohammed’s local and global expertise in technology, logistics, marketing, growth strategies, and investment ecosystems provides valuable insights.

About BARQ

BARQ is a pioneering company providing “bullet delivery” services, setting higher standards in speed, reliability, and customer satisfaction in the logistics sector. It offers delivery within 1–2 hours in a 5 km radius from the pickup point and within 2–4 hours inside the city limits. The company’s goal is to revolutionize the customer experience; ensuring that every merchant receives their orders within two hours with flawless service, continuously expanding our coverage, and offering innovative and reliable delivery solutions.

The company offers a wide range of delivery services tailored to meet the needs of merchants. It ensures that orders are delivered in record time. Thanks to our wide coverage, we can deliver to different regions. Customers can choose the payment method that suits them.

HubBox Secures £6 Million Investment to Accelerate Out of Home Delivery Growth

London based delivery technology company HubBox has completed a £6 million funding round as demand for flexible pickup points continues to rise across global ecommerce markets. Led by Puma Growth Partners, the investment will support the company’s international expansion and ongoing software development initiatives.

Founded in 2015, HubBox was created to address the challenges caused by failed home deliveries in ecommerce operations. The company provides software that enables retailers to offer local pickup points during the checkout process. This model has gained strong momentum as consumers seek more predictable delivery experiences and as urban logistics face increasing congestion.

HubBox Works with Thousands of Retailers

Today, HubBox collaborates with thousands of retailers across the United Kingdom, Europe and the United States. Its client portfolio includes major brands such as GAP, Selfridges and Gymshark. Industry analyses indicate that out of home delivery methods, including click and collect and parcel shop pickup, continue to grow at double digit rates each year.

“We Will Focus on Expanding Engineering Teams and Enhancing the Platform”

HubBox CEO Sam Jarvis stated that the company has experienced steady growth in recent years, while retailers increasingly seek more reliable and cost efficient delivery alternatives. Jarvis noted that the company will expand its engineering teams and focus on platform enhancements to meet rapidly rising demand.

Puma Growth Partners emphasised that HubBox’s strong technical capabilities and strategic partnerships with major courier networks played a key role in their investment decision. The firm highlighted that integrating alternative delivery options at checkout remains a significant challenge for retailers and that HubBox has established itself as a leading player in this space.

Competition Intensifies in Last Mile Delivery

The investment comes at a time when global logistics is undergoing rapid transformation. Courier companies are expanding parcel locker networks, while ecommerce platforms are promoting pickup options more heavily to reduce operational pressure during peak seasons. Industry reports indicate that out of home delivery models can reduce failed delivery rates by up to 90 percent and help lower emissions in high traffic urban areas.

With its new investment, HubBox aims to strengthen its role in shaping the future of ecommerce logistics and expand its presence across additional global markets.

Emirates SkyCargo and LODD Autonomous Collaborated for Drone Cargo

Emirates SkyCargo and Abu Dhabi based LODD Autonomous have signed a strategic collaboration to accelerate the development of autonomous drone cargo systems. The agreement signed at the Dubai Airshow represents an important step in the UAE’s logistics transformation and reflects the country’s goal of positioning itself as one of the world’s leading logistics hubs.

Next Generation Cargo Drone: Carries 250 kg, Has a Range of 700 km

The focus of the collaboration will be to validate the use of vertical take-off and landing aircraft across Emirates SkyCargo’s global network. Through feasibility studies, coordination with regulatory authorities and live demonstrations lasting until 2027, the potential for autonomous drones to support regional and international cargo operations will be evaluated. Emirates SkyCargo will also examine the possibility of integrating LODD’s newly tested Hili drone into ground operations at its dual airport hub in Dubai.

Hili, designed and manufactured in Abu Dhabi, is an unmanned hybrid heavy lift drone capable of carrying up to 250 kilograms and reaching a range of 700 kilometers. Its successful test flight has accelerated interest in commercial applications and paved the way for broader adoption of autonomous cargo vehicles.

The Collaboration Strengthens the UAE’s Logistics Vision

Emirates SkyCargo and LODD Autonomous see this collaboration as an opportunity aligned with the UAE’s goal of building a stronger logistics infrastructure. The initiative brings together Emirates SkyCargo’s operational scale with LODD Autonomous’s advanced technologies to increase efficiency, reduce delivery times and expand the reach of cargo services. This process also supports the UAE’s national focus on creating safe, scalable and sustainable supply chain systems.

Emirates SkyCargo is rapidly expanding its innovation agenda with new products and services such as Emirates Courier Express, a door to door delivery service launched to strengthen e-commerce. With its global network covering more than 150 destinations and a fleet of over 260 wide body aircraft, the company aims to be a leader in digital and operational transformation.

The Adoption of Drone Assisted Logistics Applications Will Accelerate

Executives from both companies highlighted the long-term impact of the collaboration. Badr Abbas from Emirates SkyCargo stated that the collaboration reflects their commitment to developing innovative solutions to solve complex transportation challenges and emphasized that autonomous aircraft will play an important role in the new era of logistics.

Rashid Al Manai, CEO of LODD Autonomous, stated that the initiative is fully aligned with the UAE’s vision of integrating advanced technologies into everyday life. He said that this collaboration will accelerate the adoption of drone assisted logistics applications and strengthen the UAE’s global logistics position while maintaining the highest safety and regulatory standards.

This initiative stands out as part of the UAE’s strategy to strengthen its national technology ecosystem from research to development and large-scale deployment. As the testing process progresses, the partnership between Emirates SkyCargo and LODD Autonomous is expected to play an important role in shaping the future of autonomous cargo transportation in the region and beyond.

First Drone Delivery Trial Conducted in Abu Dhabi

Autonomous Delivery Project Launched in Abu Dhabi in Collaboration with Noon and AutoGo

Abu Dhabi has launched an ambitious pilot project aimed at revolutionizing the logistics sector with autonomous delivery vehicles. This initiative is being led by the Integrated Transport Centre (ITC), an affiliate of the Department of Municipalities and Transport. The project is carried out in collaboration with Noon, the region’s leading e-commerce platform, and AutoGo, an artificial intelligence platform and subsidiary of K2.

Autonomous Delivery Vehicles Equipped with Artificial Intelligence and Advanced Sensors

The pilot project integrates AutoGo’s autonomous delivery vehicles into Noon’s existing logistics network. It also aims to enhance the efficiency of mini fulfillment centers across Abu Dhabi. This collaboration seeks to reduce congestion, improve operational performance, and contribute to the creation of a more sustainable transportation system. The autonomous delivery vehicles, equipped with artificial intelligence and advanced sensors, are able to navigate urban areas safely and efficiently, delivering orders without human intervention.

Part of Abu Dhabi’s Efforts to Build a Smart Mobility Ecosystem

The integration of autonomous vehicles is part of Abu Dhabi’s efforts to build a smart mobility ecosystem. It also aims to strengthen the emirate’s position as a leader in digital transformation. This project aligns with Abu Dhabi’s comprehensive smart mobility strategy, which targets achieving 25 percent of all trips in the emirate through smart transport by 2040.

A Sustainable Future for E-Commerce Logistics

The introduction of autonomous delivery vehicles marks a significant shift in how e-commerce logistics will operate in the future. By improving the efficiency of last-mile deliveries, the project contributes to reducing carbon emissions and enhancing customer satisfaction. This move combines technology and logistics, marking an important step toward creating a more seamless and sustainable future for e-commerce and smart mobility in Abu Dhabi.

Dr. Abdulla Hamad AlGhfeli, Acting Director-General of ITC, emphasized the importance of this initiative, stating: “This pilot project highlights the effective application of innovative technologies that enhance sustainability and improve the quality of life in the community.”

Khalid: A Critical Step Toward Redefining the Future of E-Commerce Logistics

Following the success of the pilot, AutoGo, Noon, and ITC plan to expand the program to more neighborhoods and offer a wider range of products. Full commercial operations are expected to begin in the near future, setting a new standard in the region’s logistics and e-commerce sectors.

Faraz Khalid, CEO of Noon, expressed excitement about the collaboration, saying: “Our partnership with ITC and AutoGo is a critical step toward redefining the future of e-commerce logistics. This pilot project not only strengthens Abu Dhabi’s position as a regional leader in smart transport, but also sets a new standard for innovation in the logistics sector.”

This initiative underscores Abu Dhabi’s commitment to sustainable innovation and aims to maintain the emirate’s pioneering position in autonomous delivery vehicle integration and smart mobility.

Abu Dhabi Unveils Its First Licensed Driverless Delivery Pods in Masdar City

Kroger Restructures E-commerce Strategy; Closes Automated Fulfillment Centers

Supermarket giant Kroger announced significant changes to its e-commerce strategy in order to increase digital profitability by $400 million by 2026. The company revealed it will close three automated customer fulfillment centers (CFCs) in January. This move is part of a broader strategy to streamline operations and boost profitability.

Kroger, the largest supermarket operator in the U.S. and the country’s fifth-largest general retailer, will close centers in Pleasant Prairie, Wisconsin; Frederick, Maryland; and Groveland, Florida. The company will incur a $2.6 billion write-off as a result of these closures. These facilities were part of Kroger’s collaboration with UK-based automation specialist Ocado, which began between 2021 and 2023, but they failed to deliver the expected profitability.

Kroger’s E-commerce Segment Struggles to Be Profitable

Despite reporting consistent increases in digital sales since early 2022, Kroger’s e-commerce segment has failed to achieve profitability. Interim CEO Ron Sargent emphasized that these changes are necessary to ensure the long-term sustainability of the digital business. Sargent stated, “E-commerce is a key part of serving customers who want better value, wide selection, and flexible shopping options. We are taking decisive steps to make shopping easier, offer faster delivery times, and provide more options to our customers.”

Kroger to Integrate Instacart’s New AI-powered Shopping Technology into Its Mobile App

As part of its future strategy, Kroger plans to shift its delivery operations from dedicated automated centers to in-store fulfillment. The company aims to pilot “capital-light, store-based automation” in high-volume markets, using its existing store network to meet the growing demand for faster and more efficient delivery.

In addition to in-store fulfillment, Kro ger is deepening its partnerships with third-party e-commerce providers. The company plans to expand its collaboration with Instacart, making it the primary delivery provider for Kroger’s app and website. Kroger will also integrate Instacart’s new AI-powered shopping technology into its mobile apps, enabling customers to interact with an AI agent to build their shopping baskets.

Kro ger’s partnerships with DoorDash and Uber are also expanding; DoorDash will provide delivery services from over 2,700 stores, and the Uber partnership will be expanded in early 2026.

Kroger Aims to Increase E-commerce Profitability by $400 Million Annually by 2026

Kro ger is targeting an annual increase of $400 million in e-commerce profitability by 2026. As part of this plan, the company will continue to leverage the remaining CFCs in high-demand areas to enhance customer engagement, productivity, and profitability.

The company has launched a comprehensive site-by-site analysis of its automated fulfillment network to optimize its operations. Despite the challenges faced by its e-commerce division, Kro ger reported strong digital sales growth, with a 16% increase in e-commerce sales in its most recent earnings report, leading its overall sales growth alongside its fresh products and pharmacy departments.

This restructuring aims to reshape Kroger’s approach to digital retail by combining in-store fulfillment with strategic third-party partnerships, enhancing customer service and achieving sustainable profitability.

Kroger Establishes a New E-Commerce Unit