The News
A surge in e-commerce, food delivery, and parcel services is boosting profits for logistics firms, and reshaping Riyadh in the process.
Jahez, one of the top delivery apps, posted a 50% increase in annual profit to 187.9 million riyals ($50 million) in 2024, driven by rising orders and a nearly 10% drop in delivery costs over the year.
But external costs are piling up. Saudi Arabia’s annual motorcycle imports jumped 44% last year, and beyond the traffic, those new riders need housing.
The solution? Landlords are converting garages into illegal accommodations for delivery workers, nearly doubling rental prices in some areas, Al-Eqtisadiah reported. Riyadh authorities have started cracking down on labor housing, while the government is also drafting new regulations and licensing to streamline delivery operations.