PIF, Dubai businessman Alabbar launch $1bn e-commerce platform

Noon.com will launch operations in Saudi Arabia and the UAE in January, according to Mohammed Alabbar.
Updated 14 November 2016
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PIF, Dubai businessman Alabbar launch $1bn e-commerce platform

JEDDAH: The online shopping experience in the Middle East is set to forever change with the launch of Noon, described as the region’s largest-ever e-commerce company, in January.
Noon is designed to be a driver of innovation, which will offer a vast product selection and fast delivery across all categories.
With an initial investment of $1 billion, Noon will launch in the Saudi and UAE markets, and will soon cover the entire Middle East region. 
Noon aims to grow online sales in the region from 2 percent of the total market ($3 billion), to 15 percent ($70 billion) within a decade. 
Emaar Properties Chairman Mohamed Alabbar, who is leading the venture with prominent GCC investors, described Noon as “nothing less than a quantum leap in retail in the region, and the world.” 
Alabbar added: “We come with the endurance to build a customer-centric business for the long-term. For us, it’s a marathon, not a sprint. I am pleased to announce that the Public Investment Fund (PIF) of Saudi Arabia will take 50 percent equity in Noon. In addition, the head office of Noon will be based in Riyadh.”
“With Noon, we are offering the most customer-centric ecommerce experience available anywhere,” he said. “In one move, we are launching a future-focused company, which is the biggest online shopping platform ever seen in the region. Noon is a company born in the Middle East and serves customers in the Middle East.”
Noon is claims to bring a number of impressive firsts for the region. It will have the biggest selection, with 20 million products covering fashion, books, home and garden, electronics, sports and outdoor, health and beauty, personal care, toys, kids and baby products, among others.
It will have more than 10 million square feet of warehousing. At 3.5 million square feet, the UAE fulfillment center will cover more than 60 football fields.
Same-day delivery through Noon Transportation, an in-house express delivery service, and NoonPay, a secure and innovative payment gateway, are its other features.
Noon’s CEO Fodhil Benturquia said a commitment to customer-centric service and innovative technology will be key to Noon’s success. “The customer is the purpose of our being, and we are here to win their hearts and their trust. Our customer experience will be driven by state-of-the-art technology that will power everything from product discovery to purchase and delivery.”
Noon, through its mobile app and noon.com website, will be an end-to-end e-commerce retailer. “We want to be the partner of choice for sellers, whether they’re big or small. We invite them to be part of our ecosystem, working together to change the online shopping landscape for the Middle East customer.”
“Our team not only comes with exceptional backgrounds, but also with an all-consuming passion to change the way things are done,” he added.
Noon boasts that its team has a wealth of e-commerce experience earned at sector leaders, including Amazon, Apple, PayPal, eBay, Google, Flipkart and others.


Tesla plans 7% staff cut as CEO Elon Musk says company must ‘work harder’

Updated 16 min 30 sec ago
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Tesla plans 7% staff cut as CEO Elon Musk says company must ‘work harder’

  • Tesla delivered over 245,000 electric cars and SUVs last year, nearly as many as all previous years combined
  • But its 2018 production fell far short of a goal set nearly three years ago of manufacturing 500,000 vehicles for the year

Saying the road ahead was “very difficult,” Tesla’s CEO Elon Musk said Friday that the company would be cutting its staff by about 7 percent.
The electric car and solar panel maker notified its employees about the staff cuts and other plans in an email posted on Tesla Inc.’s website.
Musk said Tesla hopes to post a “tiny profit” in the current quarter but a 30 percent expansion in its workforce last year was more than it can support.
Tesla’s shares tumbled earlier this month after it cut vehicle prices by $2,000 and announced fourth-quarter sales figures that fell short of Wall Street estimates.
“Our products are too expensive for most people,” Musk said in the memo to Tesla staff, saying the company has to “work harder.”
“Tesla has only been producing cars for about a decade and we’re up against massive, entrenched competitors,” he said.
Musk said in a tweet in October that Tesla, based on Palo Alto, California, had 45,000 employees. A 7 percent cut would involve laying off about 3,150 people.
“We unfortunately have no choice but to reduce full-time employee headcount by approximately 7 percent ... and retain only the most critical temps and contractors,” he said.
The company says it delivered over 245,000 electric cars and SUVs last year, nearly as many as all previous years combined. But its 2018 production fell far short of a goal set nearly three years ago of manufacturing 500,000 vehicles for the year. That goal was announced in May of 2016 based on advance orders for its mid-range Model 3, which Musk said sells for $44,000.
Musk said Tesla plans to ramp up production of the Model 3, “as we need to reach more customers who can afford our vehicles.”
“Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity,” he said in the memo, “but succeeding in our mission is essential to ensure that the future is good, so we must do everything we can to advance the cause.”
Tesla broke ground earlier this month for a factory in Shanghai, its first outside the US. Musk said it plans to begin production there of the Model 3 and a planned crossover by the year’s end.
Tesla and other global automakers including General Motors Co., Volkswagen and Nissan Motor Corp. are pouring billions of dollars into manufacturing electric vehicles in China.