Report Overview

UAE Online Food Delivery Market – Industry Trends & Forecast Report, 2030

UAE Online Food Delivery Market size was estimated at USD 1.25 billion in 2023. During the forecast period between 2024 and 2030, the UAE Online Food Delivery Market size is projected to grow at a CAGR of 4.21% reaching a value of USD 3.86 billion by 2030. Prominent drivers of the market are 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 & 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 & 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 the market further.

Online Food Delivery Market – Overview

Online meal delivery is a convenient service allowing customers to place food and beverage orders through the Internet via a mobile application or website. With increased internet accessibility, customers can explore diverse cuisine options and precise pricing for their favorite foods. Providers of online meal delivery offer convenient location delivery and timely service options to accommodate the busy schedules of the general population. The market encompasses transactions for online meal delivery services and related offerings, mainly catering to families. Meals may be ready-to-eat or require specific preparation before immediate consumption. Online food delivery services fall into two categories: restaurant-to-consumer and platform-to-shopper. The former fulfills valid orders directly from the respective restaurant, while the latter does the same for affiliated eateries.

UAE Online Food Delivery Market

Growth Drivers

Busy Lifestyles and Time Constraints

The robust growth of the overall meal delivery sector, facilitated by delivery aggregators like Deliveroo and Talabat in the UAE market, plays a pivotal role in propelling the UAE Online Food Delivery Market. The surge is fueled by the escalating number of dual-earner households and evolving lifestyles. The rising demand for swift, affordable food access is a primary catalyst, met by online delivery services offering enticing discounts, rewards, doorstep delivery, and multiple payment options. To meet this growing demand, food service providers are establishing sizable distribution centers, ensuring the availability of quality meals and encouraging the widespread adoption of online delivery services. Also, the prevalence of smartphones and ongoing infrastructure developments in developing nations further contributes to the market's upward trajectory. Integration with the Internet of Things (IoT), allowing users to opt for online food delivery through voice commands, is expected to streamline the delivery process, addressing the needs of individuals navigating busy lifestyles and time constraints.

Challenges

High Delivery Costs and Price Sensitivity

Despite the booming growth of the UAE Online Food Delivery Market, high delivery costs pose a significant constraint. The market faces challenges due to price sensitivity among consumers who seek affordable options. The expense associated with delivery services impacts consumer choices, creating a hurdle for sustained market expansion. Striking a balance between delivery charges and consumer affordability becomes crucial for providers to navigate this restraint and foster continued growth in the competitive landscape.

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 Coverage

UAE Online Food Delivery Market – By Type

By type, the UAE Online Food Delivery Market is bifurcated into Restaurant-to-Consumer and Platform-to-Consumer segments. The platform-to-consumer segment holds a higher share in the UAE Online Food Delivery Market by type. The platform-to-consumer model handles the logistical and resource aspects of food delivery, offering delivery services to restaurants lacking in-house delivery capabilities. The growth of this model is expected to be predominantly fueled in major cities during the forecasted timeframe, driven by a rise in investments of this nature.

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.

UAE Online Food Delivery Market – By Payment

On the basis of payment, the UAE Online Food Delivery Market is split into Cash on Delivery and Online. The online segment holds a higher share in the UAE Online Food Delivery Market by payment. Digital payment services encompass transactions conducted via payment portals, net banking, or credit/debit cards. The increasing consumer familiarity with digital currencies and the collaborative efforts between banks and online food delivery platforms contribute to the accelerated adoption of online payment methods.

Competitive Landscape

Major players operating in UAE Online Food Delivery Market include Zomato, Deliveroo, Uber Eats, Talabat, Careem NOW, Eateasy, Justmop, HungerStation, Crave, and 24h.ae. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2023 - Belgium's Deliverect acquired UAE-based foodtech company ChatFood in an undisclosed deal. ChatFood, founded in 2018 and a portfolio company of Wamda Capital, serves as an omnichannel ordering and data-driven marketing platform, offering services such as social media ordering, order and pay at the table, and loyalty solutions. Deliverect, a global SaaS provider integrating online orders for restaurants, will benefit from the acquisition by expanding its support for social media, dine-in QR, and direct channel ordering. The move is expected to strengthen Deliverect's position in the Middle East and enhances its offerings in the restaurant industry, serving over 43,000 establishments worldwide.

Scope of the Report

By Type

• Restaurant-to-Consumer

• Platform-to-Consumer

By Channel

• Websites/Desktop

• Mobile Applications

By Payment

• Cash on Delivery

• Online

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. UAE Online Food Delivery Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increased internet penetration and smartphone accessibility
         2. Busy lifestyles and time constraints
         3. Growing disposable income and willingness to spend
         4. Wide variety of options and restaurant partnerships
      2. Restraints
         1. High Delivery Costs and Price Sensitivity
         2. Sustainability Concerns and Environmental Impact
      3.  Opportunities
         1. Attractive promotions and discounts
         2. Technological advancements and efficient delivery infrastructure
      4. Challenges
         1. Labor Issues and Rider Welfare
         2. Food Quality and Safety Concerns
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. UAE Online Food Delivery Market Marketing Strategies
5. UAE Online Food Delivery Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. Restaurant-to-Consumer
         2. Platform-to-Consumer
      2. By Channel
         1. Websites/Desktop
         2. Mobile Applications
      3. By Payment
         1. Cash on Delivery
         2. Online
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. UAE Online Food Delivery Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Escalating Geopolitical Tensions on UAE Online Food Delivery Market
8. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Zomato
   2. Deliveroo
   3. Uber Eats
   4. Talabat
   5. Careem NOW
   6. Eateasy
   7. Justmop
   8. HungerStation
   9. Crave
   10. 24h.ae
   11. Other Prominent Players
9. Key Strategic Recommendations
10. Research Methodology
    1.       Qualitative Research
       1.   Primary & Secondary Research
    2.       Quantitative Research
    3.       Market Breakdown & Data Triangulation
       1.   Secondary Research
       2.   Primary Research
    4.       Breakdown of Primary Research Respondents, By Region
    5.       Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       UAE Online Food Delivery Segmentation                

Figure 2       UAE Online Food Delivery Market Value Chain Analysis              

Figure 3       Company Market Share Analysis, 2023         

Figure 4       UAE Online Food Delivery Market Size, By Value (USD Billion), 2019–2030              

Figure 5       UAE Online Food Delivery Market Share, By Type, By Value, 2019–2030                 

Figure 6       UAE Online Food Delivery Market Share, By Channel, By Value, 2019–2030             

Figure 7       UAE Online Food Delivery Market Share, By Payment, By Value, 2019–2030            

List of Tables

Table 1        UAE Online Food Delivery Market Size, By Value (USD Billion), 2019–2030    

Table 2        UAE Online Food Delivery Market Size, By Type, By Value, 2019–2030

Table 3        UAE Online Food Delivery Market Size, By Channel, By Value, 2019–2030     

Table 4        UAE Online Food Delivery Market Size, By Payment, By Value, 2019–2030

Table 5        Zomato Company Overview

Table 6        Zomato Financial Overview

Table 7        Deliveroo Company Overview

Table 8        Deliveroo Financial Overview

Table 9        Uber Eats Company Overview

Table 10      Uber Eats Financial Overview

Table 11      Talabat Company Overview

Table 12      Talabat Financial Overview

Table 13      Careem NOW Company Overview

Table 14      Careem NOW Financial Overview

Table 15      Eateasy Company Overview

Table 16      Eateasy Financial Overview

Table 17      Justmop Company Overview

Table 18      Justmop Financial Overview

Table 19      HungerStation Company Overview

Table 20      HungerStation Financial Overview

Table 21      Crave Company Overview

Table 22      Crave Financial Overview

Table 23      24h.ae Company Overview

Table 24      24h.ae Financial Overview