EasyLease, with a current market capitalization of Dh750 million, is a leading name in motorcycle rentals in the UAE. After its listing on ADX (Abu Dhabi Securities Exchange) in December, the company has already started an acquisition spree much like its parent IHC.
Recently, the motorcycle rental company announced that it acquired a 70 per cent stake in 1885 Delivery Services, which plans to create a hybrid model of third-party logistics and direct rider management offering services to food tech and aggregators. There is already a go-to-market strategy via a secured contract with a leading food tech company.
The 2020 financials of Easy Lease are also evidence of its strong prospects. The revenue has surged from Dh34.2 million in 2018 to Dh87.7 million, a 156 per cent increase in two years and reiterating its potential. Profits witnessed a 221 per cent jump from Dh7.8 million to Dh25.1 million for the same period. Margins rose from 22.9 per cent to 28.6 per cent, which suggests economies of scale are starting to kick in.
Ordering in
EasyLease has sufficient cash on hand, at Dh11.96 million by end of last year compared to Dh3.08 million in 2019, suggesting it is in a position to undertake acquisition deals with ease. Global revenue in the online food delivery segment is projected to reach $151.5 billion in 2021. In the MENA region, the UAE is the second-largest market for online food delivery with $834 million.
Online sales within the UAE’s F&B market surged 255 per cent year-over-year to $412 million. It is estimated that the value could reach $619 million by 2025 and a compounded annual growth rate of 8.5 per cent over the 2020-25 period.
Disruptive technologies have upended the world, with digital adoption at the forefront. Online food ordering has followed as an organic next step. This considerable shift in consumer preferences seems to be sticky, and Easy Lease perhaps anticipated it well by exploiting opportunities to gain significant market share. Being under IHC’s wing and making strategic purchases seem like a reasonable blueprint to amplify its margin numbers.
