Saudi Arabia Delivery Apps Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Saudi Arabia Delivery Apps Market Report is Segmented by Service Type (Food Delivery Apps, Grocery Delivery Apps, Pharmacy Delivery Apps, and Other On-Demand Delivery Apps). The Market Size and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Saudi Arabia Delivery Apps Market Size

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Saudi Arabia Delivery Apps Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 7.22 Billion
Market Size (2028) USD 14.77 Billion
CAGR (2024 - 2029) 15.40 %
Market Concentration Low

Major Players

Saudi Arabia Delivery Apps Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Delivery Apps Market Analysis

The Saudi Arabia Delivery Apps Market size is estimated at USD 7.22 billion in 2024, and is expected to reach USD 14.77 billion by 2028, growing at a CAGR of 15.40% during the forecast period (2024-2028).

• High internet penetration and a growth in smartphone adoption propel the growth of the studied market. In addition, changing lifestyles in the country positively impact the market's growth.

• Further, a rise in investment in digitalization and an increase in alliances and collaborations of various restaurants, grocery stores, and pharma stores with application developers are anticipated to offer remunerative opportunities for the expansion of the market during the forecast period.

• Further, the rise in e-commerce and quick commerce services in the country would create an opportunity for the market vendors to develop advanced delivery applications to capture the market share. For instance, according to the Riyadh Chamber, The government of Saudi Arabia aims to increase the contribution of modern commerce and e-commerce to 80% in the retail sector by 2030.

• The Saudi Arabia delivery apps market faces a challenge as there is a high consumer desire for a fine dining experience. While delivery apps offer convenience, many consumers in Saudi Arabia prioritize the experience of dining out. This preference acts as a restraint on the growth of delivery apps, particularly in the segment catering to upscale dining.

• Further, inflation can affect the costs associated with running a delivery application, including fuel prices, raw materials, and labor costs. Higher inflation rates may lead to increased operation expenses, which would result in higher prices for consumers or reduced profit margins for delivery companies. For instance, according to IMF, In 2022, the average inflation rate amounted to 2.47 percent compared to the previous year.

• According to the World Bank, in 2022, Saudi Arabia's estimated unemployment rate amounted to approximately 5.64 percent. This decrease is down almost 1 percent from the year before. The unemployment rate is the percentage of workers in the total labor force. Such a huge unemployment rate may restrict individuals from spending more, which would hamper the studied market.

Saudi Arabia Delivery Apps Market Trends

Rise in Smartphone Penetration to Fuel the Growth of the Market

• The rise in smartphone penetration in Saudi Arabia has fueled the growth of the app delivery market, as more people are using their mobile devices to access goods and services conveniently. Companies like HungerStation and Jahez have capitalized on this trend, offering food delivery services with a wide range of restaurant options to choose from. Moreover, grocery delivery apps like Nana Direct and Mrsool have gained popularity, allowing users to order groceries and other essentials easily.

• Ride-hailing apps have expanded their services beyond transportation to include food and package delivery, leveraging their existing infrastructure and customer base. Additionally, delivery service providers like Talabat and Zomato have diversified their offerings to include groceries, pharmacies, and other essentials, catering to the evolving needs of consumers.

• Companies like Delivery Hero have seen increased demand for their delivery services, prompting them to expand their operations and enhance their technology to meet customers' growing expectations. Therefore, the rise in smartphone penetration has transformed the app delivery market in Saudi Arabia, with many companies offering convenient solutions for various consumer needs, driving innovation and competition in the industry.

• The Communications, Space, and Technology Commission (CST) released its report on the usage and penetration of the internet in Saudi Arabia for 2023. According to the report, internet penetration in the Kingdom reached nearly 99% by the end of 2023, up from 98.6% a year earlier.

• Additionally, with the high internet and smartphone penetration, consumer shopping behavior is rapidly changing, thus forcing the e-commerce market vendors to offer innovative shopping apps coupled with various digital payment transaction modes. Such factors are further expected to drive the market in the country as consumers continue to look at the easy and convenient way to shop online using their smartphones. Due to the growing smartphone and internet penetration, major e-commerce vendors such as SHEIN, Noon, and Amazon offer their mobile applications for online shopping in the country.

• Over the forecast period, high internet and smartphone penetration are expected to drive the e-commerce market in the Kingdom at a rapid pace owing to the changing consumer behavior, increasing use of smartphones for online shopping, and fast-speed internet. Moreover, the high internet penetration in the country is expected to enable retailers to connect with potential customers and express their brand in entirely new ways, thus driving the e-commerce market in the Kingdom of Saudi Arabia over the forecast period.

Saudi Arabia Delivery Apps Market: Average Monthly Usage of Mobile Data Per Smartphone, in Gigabytes, GCC, 2022 and 2028

Food Delivery Apps to Witness Rapid Growth

• The food delivery segment in Saudi Arabia is experiencing rapid growth due to several factors, such as increasing internet penetration, changing consumer preferences, and convenience. Companies like HungerStation, Jahez, and Talabat are capitalizing on this trend by offering easy-to-use apps, a wide range of restaurant choices, and efficient delivery services.

• Additionally, the pandemic has further accelerated the adoption of food delivery services as people prioritize safety and convenience. This growth is also attracting investments from both local and international players, further fueling the expansion of the market. Therefore, food delivery apps' convenience, variety, and safety are driving their popularity and growth in Saudi Arabia.

• For instance, in July 2023, Delivery Hero SE acquired all the outstanding minority shareholdings, 37%, in HungerStation Holding Limited, the sole shareholder of HungerStation Company Ltd in Saudi Arabia, which operates Delivery Hero’s Saudi business. The transaction came to a total of USD 297 million.

• The proliferation of smartphones, improved internet accessibility, and the growing digital infrastructure have been pivotal in expanding online food ordering and delivery services in Saudi Arabia. The widespread adoption of mobile applications and online platforms has revolutionized how consumers interact with the food industry.

• Overall, these technological advancements have empowered consumers with the convenience of browsing diverse menus, placing orders, and tracking deliveries with just a few taps on their smartphones. Furthermore, integrating GPS tracking systems enables real-time monitoring of delivery status, enhancing customer transparency and reliability.

Saudi Arabia Delivery Apps Market: Estimated Online Food Delivery App Users, in Millions, Saudi Arabia, 2018-2028

Saudi Arabia Delivery Apps Industry Overview

Saudi Arabia's Delivery Apps Market is fragmented as Continuous innovation in technology services and marketing strategies is necessary to stay ahead of competitors. Price competition, promotional offers, and loyalty programs are common tactics used to attract and retain customers. Some of the Players include MRSOOL Inc, Jahez International Company For Information Systems Technology, HungerStation LTD (Delivery Hero SE), Talabat (Delivery Hero SE), Carrefour Ksa (Majid Al Futtaim Retail)

• April 2024 - Talabat joined forces with Truecaller to improve customer safety and business communication using Truecaller's verified business caller ID solution suite. Talabat's Verified Business caller ID solution enables the company to improve its phone-based communications by providing authentic brand identity, contextual information, trust & safety, which helps users to identify authentic business calls and significantly improves their communication experience.

• April 2024 - Chinese on-demand local services company Meituan is poised to launch its international food delivery platform, KeeTa, in Riyadh. The move represents the company's first foray into an overseas market amidst a slowdown in domestic growth. The anticipated launch in Riyadh, one of the wealthiest cities in the Middle East, is part of Meituan's broader strategy to seek growth opportunities abroad as competition in China intensifies while local consumption is falling.

Saudi Arabia Delivery Apps Market Leaders

  1. MRSOOL Inc.

  2. Jahez International Company For Information Systems Technology

  3. HungerStation LTD (Delivery Hero SE)

  4. Talabat (Delivery Hero SE)

  5. Carrefour Ksa (Majid Al Futtaim Retail)

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Delivery Apps Market Concentration
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Saudi Arabia Delivery Apps Market News

• July 2023 - Delivery Hero SE acquired all the outstanding minority shareholdings, a total of 37%, in HungerStation Holding Limited, which is the sole shareholder of HungerStation Company Ltd in Saudi Arabia, which operates Delivery Hero's Saudi business. The transaction came to a total of USD 297 million.

• July 2023 - Taker announced the launch of the Dook delivery application, enabling users to order meals from their famous restaurants at the exact price of the restaurant and without extra fees. Dook addresses the problem of increasing prices for items in delivery applications by delivering services to restaurant proprietors at a low commission rate of only 5%. This permits the restaurant owners to give all menu items to the customer at the restaurant's price and offer them various upgrades and discounts that encourage the customer to order, ultimately resulting in increased profits for the restaurants.

Saudi Arabia Delivery Apps Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Regulatory Landscape

    3. 4.3 Assessment of Impact of Macroeconomic Trends

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitutes

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Industry Value Chain Analysis

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rise in Smartphone Penetration Fueled the Growth of the Market

      2. 5.1.2 Convenient Payment Gateways Play a Pivotal Role in Augmenting the Growth of Delivery Apps in Saudi Arabia

    2. 5.2 Market Restraints

      1. 5.2.1 Consumers Desire for Fine Dining Experience

    3. 5.3 Key Business Models of Delivery Apps in Saudi Arabia

    4. 5.4 Current Positioning of Saudi Arabia within Middle East

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Service Type

      1. 6.1.1 Food Delivery Apps

      2. 6.1.2 Grocery Delivery Apps

      3. 6.1.3 Pharmacy Delivery Apps

      4. 6.1.4 Other On-demand Delivery Apps

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 MRSOOL Inc.

      2. 7.1.2 Jahez International Company For Information Systems Technology

      3. 7.1.3 HungerStation LTD (Delivery Hero SE)

      4. 7.1.4 Talabat (Delivery Hero SE)

      5. 7.1.5 Carrefour Ksa (Majid Al Futtaim Retail)

      6. 7.1.6 The Chefz (Jahez International Company For Information Systems Technology)

      7. 7.1.7 Aram Meem LLC

      8. 7.1.8 Lugmety

      9. 7.1.9 Matajer Central Co.

      10. 7.1.10 Nahdi Medical Company

      11. 7.1.11 Shatirah House Restaurant Co.

      12. 7.1.12 Shgardi Gate For Information Technology Systems

      13. 7.1.13 Dailymealz

      14. 7.1.14 Bindawood Holding

      15. 7.1.15 Al Dawaa Medical Services Company

      16. 7.1.16 Careem Networks FZ-LLC (Uber Technologies, Inc.)

  8. 8. MARKET SHARE ANALYSIS OF FOOD DELIVERY APPS IN SAUDI ARABIA

  9. 9. INVESTMENT ANALYSIS

  10. 10. FUTURE OUTLOOK OF THE MARKET

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Saudi Arabia Delivery Apps Industry Segmentation

Transporting goods from the source site to a predetermined destination is referred to as delivery. Freight is mainly handled by road and rail on land, maritime channels, or air transport networks. The market is defined by the revenue generated from various sources, such as delivery fees, commissions, advertising and marketing revenues, online payment fees, etc., on delivery applications such as food, grocery, pharmacy, etc., in the market.

The Saudi Arabia delivery apps market is segmented by service type (food delivery apps, grocery delivery apps, pharmacy delivery apps, and other On-demand delivery apps). The market size and forecasts are provided in terms of value (USD) for all the above segments.

By Service Type
Food Delivery Apps
Grocery Delivery Apps
Pharmacy Delivery Apps
Other On-demand Delivery Apps
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Saudi Arabia Delivery Apps Market Research FAQs

The Saudi Arabia Delivery Apps Market size is expected to reach USD 7.22 billion in 2024 and grow at a CAGR of 15.40% to reach USD 14.77 billion by 2028.

In 2024, the Saudi Arabia Delivery Apps Market size is expected to reach USD 7.22 billion.

MRSOOL Inc., Jahez International Company For Information Systems Technology, HungerStation LTD (Delivery Hero SE), Talabat (Delivery Hero SE) and Carrefour Ksa (Majid Al Futtaim Retail) are the major companies operating in the Saudi Arabia Delivery Apps Market.

In 2023, the Saudi Arabia Delivery Apps Market size was estimated at USD 6.11 billion. The report covers the Saudi Arabia Delivery Apps Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Delivery Apps Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Saudi Arabia Delivery Apps Industry Report

Statistics for the 2024 Saudi Arabia Delivery Apps market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Delivery Apps analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Saudi Arabia Delivery Apps Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)