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Saudi Arabia Food Delivery Market

Saudi Arabia Food Delivery Market, By Operation Type (Food Aggregators, Restaurant-Based), By Source (Online (Mobile App And Web), Offline), By Payment (Mobile Wallet, Card Payment, Cash On Delivery And Net Banking) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: September 2021
  • Report ID: BWC2187
  • Available Format: PDF
  • Page: 115

Report Overview

Because of the changing working scenario and increasing workload, as well as the emergence of various online platforms, the Saudi Arabia food delivery market is growing at an accelerated rate.

Saudi Arabia Food Delivery Market- Industry Trends & Forecast Report 2027

Saudi Arabia food delivery market is eyeing phenomenal growth at a CAGR of 9.3% during the forecast period. The changing working scenario and increasing workload make it harder for people to cook meals regularly, fueling the demand for food delivery services and propelling the market growth. Additionally, the emergence of various online platforms making food delivery services more accessible is also driving the growth of the Saudi Arabia food delivery market. Food delivery services have gained immense popularity among young consumers of Saudi Arabia because of the convenience they offer. Such services allow users to experience hassle-free delivery, saving both time and energy, which plays an important role in driving the market.

Saudi Arabia Food Delivery Market- Overview

A retail food delivery service provides food direct to customers from a restaurant, store, or independent food delivery company. Orders are typically placed via a restaurant's website or mobile app or through a food delivery service. Aadditionally, such services can deliver various food items, such as restaurant food, desserts, salads, meal kits, groceries, and even vegetables. The outlets take orders through their websites or mobile apps and can also be reached directly via mobile phones. The emergence of third-party food delivery apps has also strengthened the Saudi Arabia food delivery market.

Saudi Arabia Food Delivery Market Forecast and Trends

Growth Drivers

Emergence of Food Delivery Mobile Applications

The emergence of various global and local food delivery platforms is one of the major factors propelling the growth of Saudi Arabia. Due to the increasing internet penetration and smartphone usage, food delivery apps such as MRSOOL, Talabat, Lugmety, UberEats, and others, have gained significant popularity across Saudi Arabia. These food outlets are also increasingly shifting towards cloud platforms and delivery & takeaway-only services. The mobile food delivery mobile applications also integrate seamlessly with payment applications to facilitate smooth payment, which drives the market growth.

Government Efforts into Accelerating Food Delivery Sector

Saudi Arabia relies mainly on oil exports to fuel its economy. Therefore, Saudi Arabia is promoting other sectors, including food delivery services, through investments to achieve a multifaceted economy. For instance, the Communications and Information Technology Commission (CITC) signed a three-year cooperation agreement with the Social Development Bank (SDB) to finance self-employed citizens by enabling them to own private vehicles for work delivery options. Such initiatives and campaigns are expected to boost the food delivery jobs and businesses in Saudi Arabia.

Restraints

Lack of Technological Knowledge Among Small Businesses

The food delivery market in Saudi Arabia is mainly technologically driven and is dependent on internet and mobile applications. However, several local food joints aged 40 - 50 or above owners are not well-versed with technology and its applications. This factor severely restricts Saudi Arabia’s food delivery market. Furthermore, the lack of trust in the online payment apps of these restaurants also sabotages market growth.

Impact of COVID-19 on Saudi Arabia Food Delivery Market

The Saudi Arabia food delivery market experienced a significant boom following the COVID-19 outbreak. The market experienced a slight slump during the initial phase of the government-imposed lockdown, in part due to the lockdown restrictions enacted to curb the spread of the virus. As a result, restaurant owners suffered severe losses. Considering the situation, the government eased the limitations and allowed home deliveries and takeaways. Due to this, the Saudi Arabian food delivery market experienced double-digit revenue growth.

Saudi Arabia Food Delivery Market - By Operation Type

The Saudi Arabia food delivery market is segmented into food aggregators and restaurant-based models based on modes of operation. The food aggregators segment holds the largest market share. It provides customers with various restaurants and food outlet choices based on the type of food they wish to order. Furthermore, these platforms also offer special discounts and premium benefits, such as faster delivery which attracts the customers. On the other hand, the restaurant-based model also covers a substantial share of the market. Nevertheless, it is a privilege reserved only for top brands.

Saudi Arabia Food Delivery Market - By Source

Based on sources, the Saudi Arabia food delivery market is grouped into online (mobile app and web), and offline segment. The online segment holds the largest market share because of the emergence of various third-party food delivery applications. Online food delivery applications offer a wide range of restaurants and food outlets to customers to choose from. Moreover, to streamline the payment process, they are integrated with popular payment applications. Furthermore, customers can track their order status and receive real-time updates via mobile apps and websites. Thus, these advantages are driving the growth of the because of which they hold the largest share in the market.

Saudi Arabia Food Delivery Market - By Payment

The Saudi Arabia food delivery market is segmented into a mobile wallet, card payment, cash on delivery, and net banking based on payment procedures. Among these segments, the cash on delivery option accounts for the largest market share. However, this method is witnessing negative growth over the years as the mobile wallet segment is taking over its place. Payment applications such as PayFort, CashU, PayTab, are gaining immense popularity, especially among young users, because of the faster payment options. As a result, the mobile wallet segment is projected to witness the highest growth rate in the Saudi Arabia food delivery market.

Saudi Arabia Food Delivery Market: Competitive Landscape

The leading players in the Saudi Arabia food delivery market are Talabat, Hunger Station, Careem, Jahez, Mrsool Inc, Lugmety, Toyou, Mathaqi, The Chefz, Wssel, Walem, Shadda, Ngwah, and other prominent players.

With dedicated websites and apps for restaurants and third-party food delivery services, the food delivery market in Saudi Arabia is fragmented. These platforms offer attractive deals and discounts to appeal to the masses. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, collaborations, etc., is also very prominent in this market.

Recent Developments

  • In September 2021, Riyadh-based storage and delivery startupDiggipacks announced to have acquired shares in FWRUN, an Egypt-based logistics service company, to exchange expertise, resources, and technology and expand their business between Saudi Arabia and Egypt.
  • In February 2021, The Chefz, a Riyadh-based gourmet and food delivery platform, announced to have raised seed funding in a round led by Saudi’s Vision Ventures.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Million

Product Service/Segmentation

By Operation Type, By Source, By Payment

Key Players

Talabat, Hunger Station, Careem, Jahez, Mrsool Inc, Lugmety, Toyou, Mathaqi, The Chefz, Wssel, Walem, Shadda, Ngwah, and other prominent players.

 

By Operation Type

  • Food Aggregators
  • Restaurant-Based

By Source

  • Online (Mobile App and Web)
  • Offline

By Payment

  • Mobile Wallet
  • Card Payment
  • Cash on Delivery and Net Banking
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Emergence of Food Delivery Mobile Applications
        2. Government Efforts into Accelerating Food Delivery Sector
      2. Market Restraints
        1. Lack of Technological Knowledge Among Small Businesses
      3. Market Challenges
        1. High Operational Cost of Restaurant Owners
      4. Market Opportunity
        1. Increasing Internet and Smartphone Penetration
        2. Growing Prominence of Food Delivery Services Among Full-Service Restaurants
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. Saudi Arabia Food Delivery Market Overview
    1. Market Size & Forecast by Value, 2017-2027
    2. Market Size and Forecast, By Segment
      1. By Operation Type
        1. Food Aggregators
        2. Restaurant-Based
      2. By Source
        1. Online (Mobile App and Web)
        2. Offline
      3. By Payment
        1. Mobile Wallet
        2. Card Payment
        3. Cash on Delivery And Net Banking
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking By Operating Parameters
  7. Impact of COVID-19 on Saudi Arabia Food Delivery Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Talabat
    2. Hunger Station
    3. Careem
    4. Jahez
    5. Mrsool Inc
    6. Lugmety
    7. Toyou
    8. Mathaqi
    9. The Chefz
    10. Wssel
    11. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

 

Figure 1: Saudi Arabia Food Delivery Market Segmentation

 

Figure 2: Saudi Arabia Food Delivery Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2020

 

Figure 4: Saudi Arabia Food Delivery Market Size, By Value (USD Billion), 2017-2027

 

Figure 5: Saudi Arabia Food Delivery Market Share (%), By Operation Type, By Value, 2017-2027

 

Figure 6: Saudi Arabia Food Delivery Market Share (%), By Source, By Value, 2017-2027

 

Figure 7: Saudi Arabia Food Delivery Market Share (%), By Payment, By Value, 2017-2027

 

 

List of Tables

 

Table 1: Saudi Arabia Food Delivery Market Size, By Operation Type, By Value, 2017-2027

Table 2: Saudi Arabia Food Delivery Market Size, By Source, By Value (USD Billion), 2017-2027

Table 3: Saudi Arabia Food Delivery Market Size, By Payment, By Value (USD Billion), 2017-2027

Table 4: Talabat Financial Analysis

Table 5: Talabat Business Overview

Table 6: Hunger Station Financial Analysis

Table 7: Hunger StationBusiness Overview

Table 8: Careem Corporation Financial Analysis

Table 9: Careem Corporation Business Overview

Table 10: JahezFinancial Analysis

Table 11: JahezBusiness Overview

Table 12: Mrsool IncFinancial Analysis

Table 13: Mrsool IncBusiness Overview

Table 14: Lugmety Financial Analysis

Table 15: Lugmety Business Overview

Table 16: Toyou Financial Analysis

Table 17: Toyou Business Overview

Table 18: Mathaqi Financial Analysis

Table 19: Mathaqi Business Overview

Table 20: The ChefzFinancial Analysis

Table 21: The ChefzBusiness Overview

Table 22: Wssel Financial Analysis

Table 23: Wssel Business Overview

Market Segmentation

By Operation Type

  • Food Aggregators
  • Restaurant-Based

By Source

  • Online (Mobile App and Web)
  • Offline

By Payment

  • Mobile Wallet
  • Card Payment
  • Cash on Delivery and Net Banking
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Frequently Asked Questions:

Ans: Saudi Arabia food delivery market is growing at a CAGR of 9.3%.
Ans: Mobile applications and government initiatives to accelerate the food delivery industry in Saudi Arabia are key drivers of the market's growth.
Ans: The key players in the Saudi Arabia food delivery market are: Talabat, Hunger Station, Careem, Jahez, Mrsool Inc, Lugmety, Toyou, Mathaqi, The Chefz, Wssel, Walem, Shadda, Ngwah, and other prominent players.
Ans: Online segment accounted for the largest share in the Saudi Arabia food delivery market.
Ans: Lack of technology adoption among restaurant owners is the primary restraining factor for the Saudi Arabia food delivery market.