Acquisition of 50 percent of Tawseel's shares by Fares Foundation will allow the company to expand services into the rest of the UAE and beyond
Logistics firm Fares foundation has announced it is acquiring 50 percent of the shares in Sharjah-based food delivery startup Tawseel Delivery Services, paving the way for both firms to expand their footprint across the UAE and beyond.
According to details of the acquisition, Fares Foundation will use the acquisition to increase the number of delivery vehicle fleet and while Tawseel will be able to improve on the efficiency of its services as well as grow them in terms of geographical scope into the wider UAE and Saudi Arabia as well as the rest of the GCC.
Increase in the demand of services offered by the logistics sector is driving the industry to boost corporate competitiveness through acquisitions, said Tawseel founder Mohamed al Musharakh.
“Acquisitions are among of the most significant processes that enhance business development, with companies merging their experiences and expertise to deliver quality services and products to their clients. An acquisition is also a means to enhance the competitiveness and sustainability of companies under open market policies,” he said.
“This acquisition is an acknowledgment of our Tawseel’s commitment to excelling in delivery and logistics by attracting the expertise of the best in the field. We are confident that the move will develop our role and share in markets across UAE and the region. It is a qualitative move, which we hope to leverage to expand our access to global markets,” he added.
Founded in 2017 with the support of the Sharjah Entrepreneurship Centre (Sheraa), Tawseel has helped restaurants decrease their cost of delivery by more than 60 percent, the company said in a statement.
“Acquiring 50 percent of Tawseel’s shares strengthens our service outreach to clients across B2B and B2C secrors in the UAE,” said Ahmed Saif bin Saed Al Suwaidi, vice-chairman of Fares Foundation.
“Competitiveness in Sharjah and the UAE, coupled with our expansion efforts, has led to this new endeavour with Tawseel, which has an excellent track record of success that has been achieved in just over a year”