UAE Online Food Delivery Market Size More Than Triples to Reach USD 3.86 Billion by 2030

Published | 23 February 2024

UAE Online Food Delivery Market is flourishing due to the increasing internet penetration and smartphone accessibility, busy lifestyles and time constraints, growing disposable income and willingness to spend, and wide variety of options and restaurant partnerships.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the UAE Online Food Delivery Market size at USD 1.25 billion in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the UAE Online Food Delivery Market size to expand at a CAGR of 4.21% reaching a value of USD 3.86 billion by 2030. The Online Food Delivery Market in UAE is propelled by the rising prevalence of smartphones and increased internet penetration. Other key driver of industry growth is the evolution of the broader food delivery sector, enabling customers to conveniently order from various restaurants. The market has witnessed additional growth with the expansion of delivery aggregators like Deliveroo and Talabat in the UAE market in recent years. Also, the growing number of dual-income families and changing lifestyles and eating patterns are anticipated to favor industry growth over the forecast period. The growing demand for quick access to food at affordable prices is further driving the growth. Benefits offered by online delivery services include heavy discounts, rewards and cashback offers, doorstep delivery, and multiple payment options. Furthermore, providers of food services are setting up large warehouses to store fresh produce for offering high-quality food, encouraging the adoption of online delivery services. Food delivery apps are reshaping the restaurant industry and how we eat by inspiring digital-only establishments that do not need a dining room or waiters. As a result, the emergence of virtual restaurants and delivery-only kitchens is expected to provide significant growth opportunities. Another driving force is the increasing infrastructural advancements in emerging economies offer growth opportunities to vendors operating in the industry. They enable companies to expand their restaurant partner network and delivery network in different cities. Notably, IoT integration enables users to opt for online food delivery services through voice commands, further easing the delivery process. Such technological advancements are anticipated to drive industry growth further.

Opportunity – Technological advancements and efficient delivery infrastructure

UAE Online Food Delivery Market experiences a transformative shift driven by technological advancements and the establishment of an efficient delivery infrastructure. Traditional dine-in and takeout models have evolved as customers increasingly opt for the convenience of enjoying their meals at home. Third-party platforms, such as Talabat, Deliveroo, and CareemNow, have witnessed substantial revenue growth, reflecting the integration of advanced technologies. Cloud kitchens, also known as dark kitchens or ghost kitchens, have gained prominence, leveraging technological innovations to streamline delivery operations. This shift toward efficient and technology-driven delivery systems enhances customer experience, contributing to the overall growth and competitiveness of the UAE Online Food Delivery Market.

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Impact of Geopolitical Tensions on UAE Online Food Delivery Market

The UAE Online Food Delivery Market is impacted by geopolitical tensions in several ways. The stability of the economy is intricately linked to geopolitical stability, as a secure political environment fosters confidence among investors and businesses, positively influencing consumer spending and, in turn, the online food delivery market. Tourism, a major driver of the food service industry in the UAE, is susceptible to geopolitical events such as regional conflicts or security concerns, impacting tourist numbers and, consequently, the demand for online food delivery services. Regulatory changes stemming from geopolitical shifts, alterations in licensing requirements, trade agreements, or legal frameworks, can affect the operations and growth of food delivery platforms. Currency fluctuations resulting from geopolitical events may impact the operational costs of online food delivery platforms that source internationally, potentially leading to adjustments in pricing or profit margins. Supply chain disruptions caused by geopolitical tensions can pose challenges to maintaining the quality and variety of offerings. Moreover, consumer confidence is influenced by geopolitical stability or instability, with uncertainties or economic downturns prompting more cautious spending habits and affecting the demand for online food delivery services. Additionally, the UAE's diplomatic relationships can influence international business partnerships, potentially impacting the entry or expansion of global online food delivery platforms in the market. In navigating this complex environment, businesses in the UAE's online food delivery market must vigilantly monitor geopolitical developments, adapt to regulatory changes, and assess risks and opportunities arising from the geopolitical landscape. Maintaining agility and diversifying supply chains becomes crucial for effectively managing challenges posed by geopolitical uncertainties.

UAE Online Food Delivery Market

Segmental Information 

UAE Online Food Delivery Market – By Channel

Based on channel, the UAE Online Food Delivery Market is split into Websites/ Desktop and Mobile Applications segments. The mobile applications segment holds a higher share in the UAE Online Food Delivery Market by channel. It can be attributed to the widespread use and increasing reliance on smartphones for convenient and quick access to food services. With busy lifestyles and on-the-go preferences, consumers find mobile apps to be user-friendly and efficient. Additionally, the seamless integration of features like real-time tracking, personalized recommendations, and easy payment options enhances the overall customer experience, contributing to the higher market share of mobile applications in facilitating online food deliveries in the UAE.

Competitive Landscape

The UAE Online Food Delivery Market is fragmented, with numerous players serving the market. The key players dominating the UAE Online Food Delivery Market include Zomato, Deliveroo, Uber Eats, Talabat, Careem NOW, Eateasy, Justmop, HungerStation, Crave, and 24h.ae. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.

Don’t miss the business opportunity of the UAE Online Food Delivery Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and the UAE Online Food Delivery Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the UAE Online Food Delivery Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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