Saudi Arabia Food Delivery Market

1. Saudi Arabia Food Delivery Market, By Operation Type, Industry Size, Share, Trend Analysis and Forecast Report, 2022-2028

2. Saudi Arabia Food Delivery Market- Industry Trends & Forecast Report 2028 A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the Saudi Arabia Food Delivery Market was worth USD 762.8 million in 2021 and is projected to reach USD 3.842.6 million by the year 2028, growing at a CAGR of 24.4% over the analysis period of 2022-2028. Some of the key factors driving the growth of the Saudi Arabia Food Delivery market are government efforts into accelerating food delivery sector, emergence of cloud kitchen amidst the region and growing prominence of food delivery services among full-service restaurants.

3. Growth Drivers Emergence of Food Delivery Mobile Applications Coupled with Internet Penetration With 72.8 % possessing a smartphone, Saudi Arabia is the world's third-largest smartphone market. One of the key growth factors for the Saudi Arabia food delivery market is predicted to be the increasing penetration of smartphones and internet usage. Due to their growing spending power, young and working adults are also driving the market. Furthermore, their great dependence on and trust in online payment systems promotes market expansion. As a result, Saudi Arabia is expected to lead the food delivery business over the next few years.

4. Restraints  Lack of Technological Knowledge Among Small Businesses Saudi Arabia's food delivery sector is primarily technologically driven and reliant on the internet and mobile applications. However, the owners of some local restaurants in their 40s and 50s are unfamiliar with technology and its applications. Due to a technical issue, a lack of communication between the customer and the food delivery provider frequently results in the delivery of incorrect orders, delivery to the incorrect place, poor food quality, and late delivery, among other things, resulting in a decrease in customer visits to websites and a negative impact on business. Saudi Arabia's food delivery market is severely limited as a result of this problem.

5. Impact of COVID-19 The nationwide lockdown induced by the COVID-19 pandemic primarily caused disruptions in the development of the Saudi Arabia online food delivery market. The initial phases of the covid-19 pandemic resulted in hesitancy among the consumers from ordering online food owing to the apprehensions regarding safety and an overall preference for home-cooked food. However, things picked up later with the pandemic helping the companies recover unit economics while adding more consumers, as the frequency to dine out substantially dropped. Although consumers have restarted going out for meals, they feel very convenient to order food online since it liberates them from personally visiting the restaurant.

6. Competitive Landscape The leading players in the Saudi Arabia food delivery market are Mrsool Inc., Delivery Hero, Careem, Jahez, Lugmety, ToYou, Mathaqi, The Chefz, and Wssel. Mrsool Inc., Delivery Hero, and Careem had good growth in 2021. Mrsool grew very fast during the last three years. This company is serving more than 4 million users across all the cities of the Saudi Kingdom. Mrsool developed the on-demand service fulfillment model in Saudi Arabia, by setting up a huge customer-to-customer network via generic chat-based ordering experience, which helped customers to be creative and reduce challenge in explaining the service needed and providing the couriers the option to bid with their price they see fit, making a fully scalable and self-regulating model.

7. Recent Development 31 Dec 2021 – Delivery Hero SE the world’s leading local delivery platform signed an agreement with a number of shareholders of Glovoapp23, S.L. to acquire an additional 39.4% stake in the Company (on a non-diluted basis) in exchange for Delivery Hero shares, making Delivery Hero the majority shareholder of Glovo after closing. May 2022: The chefz is being eyed by Jahez for a full-acquisition. Jahez signed a non-binding agreement to obtain rival company Chefz as it seeks to strengthen its situation in Saudi Arabia's fast-growing online food delivery business. The consideration for the anticipated transaction will be based “due diligence” including cash and shares in Jahez.

8. Key Players The leading players in the Saudi Arabia food delivery market are Mrsool Inc., Delivery Hero, Careem, Jahez, Lugmety, ToYou, Mathaqi, The Chefz, and Wssel. Sample Copy of the Report: https://www.blueweaveconsulting.com/report/saudi-arabia-food-delivery-market/report-sample

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