Overcoming failure, Jordan's Wheels Express founder launches logistics startup in Dubai
When we last caught up with Ibrahim Manna, he was just closing down his delivery startup, Wheels Express, one of Jordan’s early successes.
At the time, the story seemed like a cautionary tale for those navigating the treacherous waters of angel investment. Manna had scaled Wheels into a successful local delivery service, with a loyal base of customers happily ordering groceries to their homes and sending clothes out for laundry.
In early 2012, after running the company for almost three years,
Manna decided that he needed to prove to investors that he could
reach new markets. Most startups scale aggressively only after
they’ve secured a round of funding, but Wheels had little choice.
“All of the investors I met with wanted to see us operate in either
Saudi or the UAE,” says Manna.
Once he hired the team and opened the offices to scale, however,
margins took a hit, and his investors- Imad Malhas of Irisguard and
Karim Kawar, the former Jordanian ambassador to the U.S., as well
as Oasis500, decided not to enter the next round. Wheels quickly
ran out of cash given the cost of expansion, and never reached the
Saudi market.
At the time, getting over failure was tough, says Manna, but Malhas
encouraged him to pick himself back up and get on to the next
thing.
That next thing is now an ambitious bid to tackle logistics in one of the region’s trickier markets: Saudi Arabia.
Starting a new venture
This May, Manna launched Ship & Collect in Dubai, a service that will focus on last mile delivery, promising e-commerce companies better return rates than its giant competitors Aramex, FedEx, and DHL.
To do so, Ship & Collect will focus on quality control, says Manna. He’s realistic about the sacrifices that reaching for perfection will entail. “We will focus more on quality than quantity,” he says. “ Our shipping prices will be higher than Aramex, for example, but our return rates will be lower.”
Ship & Collect’s prices for warehousing and fulfillment,
however, will be cheaper, he says. For now, the startup is focusing
exclusively on solutions for e-commerce companies, following the
sector’s boom in the region. “E-commerce companies are growing
faster than any other companies out there,” says Manna. “There's a
revolution going on, we can feel it.”
It’s a tricky niche; most e-commerce companies have begun managing
their own last mile delivery in order to shave down shipping times
beyond what couriers offer. Especially in Saudi Arabia, rumors
abound of warehousing deals gone awry and unreliable local
partners. If Ship & Collect can secure the right partners and
guarantee a dependable solution in the Kingdom, it will undoubtedly
have a market.
“We’ll guarantee three attempts to set a delivery time over the
phone, and two attempts to deliver a package on the ground,” says
Manna. If fulfillment and shipping are consistent, higher prices
might be worth it for e-commerce companies, especially those that
don’t store inventory in Saudi and want to avoid paying import
duties on returned packages.
By generating a database that integrates with a variety of
e-commerce sites, Manna also hopes to make ordering easier for
customers, so that they won’t have to re-explain their address when
ordering from different vendors.
The idea is a much bigger, broader concept than Wheels Express,
with the potential to further open the Saudi market to the region.
To make it work this time, Manna is sticking to a lean approach.
“I'm trying to start small, to adopt the lessons I've learned, and
to have a better understanding with my partners about what to
expect,” he says.
With a new team of only five, he hopes to work closely with his investors, Omar Tahboub, VP of Product at Bayt.com, and Omar Shami, owner of Jordan’s Shami Eye Center, so that he doesn’t “go wild when it comes to spending money,” he says. “We’re trying to reserve our capital.”
When asked how investors view his previous struggles, Manna says
they’re viewed as an advantage. “Since Wheels Express closed, I
wore this failure as a badge of honor, and I acted the same,
because I gained a lot of experience and exposure,” he says. “They
see this as an added value; an experienced entrepreneur is better
than having someone fresh.”
He’s not the only one hoping that a “failed” entrepreneur can now
make it big.
Finding the right market fit
Before launching Ship & Collect, Manna worked for six months
at Jeeran, one of Jordan’s most seasoned startups, which has been
running for over 13 years, now helmed by Omar Koudsi after the
departure of his co-founder Laith Zraikat in early 2012.
In 2010, the startup pivoted from being a user-generated content
portal to offering local place recommendations and listings. Last
September, it brought Manna on board to build out a new food
ordering platform, in hopes of monetizing its popular user searches
for restaurants.
Yet, after the Jeeran team took the new platform live in February,
they realized that it could compromise their focus, says founder
Koudsi. There weren’t any flaws with Manna’s vision, he says. “We
had a good response, but then we realized how much we would have to
do to really succeed at it, and we thought it would come at the
expense of building our core business.”
Now, Jeeran hopes to continue focusing on its content and
eventually to partner with existing giants in the food ordering
segment, like Yemeksepeti’s FoodOnClick or Rocket Internet’s
HelloFood.
As for Manna’s future with Ship & Collect, “I think he
definitely has a shot,” says Koudsi. “I think he's going after a
big challenge; everyone is complaining about the last mile. I think
if he has the right amount of focus and the right amount of
patience, he could make it. It's the right amount of crazy to go
after.”