Comparison of the asset-light company model and its partners, showing how value and assets are distributed. The figures include SAR 7.2 billion in gross merchandise value and SAR 2.32 billion in net revenue, commission revenue of SAR 1.11 billion, a 13.1% decline in delivery fees, and a net loss for the sector

The fundamental question is not, “Who owns fewer assets?” but rather, “Who keeps the value and bears the cost?”

This article offers a structural analysis of modern business models built on the asset-light company approach, explaining that shedding physical assets does not eliminate their costs; it shifts the burden to another party in the operating ecosystem.

The Operating Model and How Value Is Distributed

  • The platform (asset-light): Focuses on creating and retaining value, relying on digital and interactive assets (technology, data, and its customer base).
  • Partners and the ecosystem (bearing the costs): They bear the burden of physical assets and the costs of operating and maintaining them (restaurants, delivery vehicles, and inventory).

A Look at the Financial and Operational Data

  • The gap between business volume and reported revenue: Gross merchandise value (GMV) reached approximately SAR 7.2 billion, while the platform’s actual net revenue totaled just SAR 2.32 billion.
  • Revenue mix and pricing power: Commission revenue reached SAR 1.11 billion, while delivery fees fell by 13.1%, reflecting competitive pressures that limit pricing power.
  • Sector realities: Despite efficiency gains, the sector recorded a total net loss of SAR 25.5 million, putting the model’s sustainability to the test.

The Trade-Off Between Models and the Hybrid Solution

  • Fewer assets = faster expansion: This model offers considerable flexibility and rapid reach, but reduces the platform’s ability to control service quality and the customer experience.
  • More assets = greater control: This model provides greater operational control and reduces direct delivery costs, but increases depreciation expenses and fixed obligations.

Strategic Takeaway

“The strongest company is not the one with the fewest assets, but the one that knows exactly what it must own to ensure quality—and what others can operate more efficiently.”