The Growing Trend Of Online Home Delivery Businesses In Dubai
December 2, 2017
The UAE is an alliance of seven different Emirates; they are- Abu Dhabi, Fujairah, Ras al-Khaimah, Ajman, Dubai, Sharjah, and Umm al-Quwain. The fast food joints and quick service restaurants are putting their efforts to organize quick and convenient options for delivery of goods altogether. Home delivery is one of the growing markets in the United Arab Emirates. Nowadays, the concept and ordering via internet from various restaurants have simplified the lives of the people living in the country.
Online Service delivery of a product or service is a form of E-commerce that allows the customers to buy goods and services over the internet.
There are three elements of online delivery:
1. Online shopping,
2. Online food ordering, and
3. Online grocery
The Ongoing Trends
There are thousands of online delivery websites in UAE, Dubai. They are also known as online delivery directories. These websites regularly publish a list of menus of different restaurants or companies along with their contact details. Most of the companies listed in these websites have 100 percent established delivery supply chains that offer guaranteed quick home delivery or even take away options. Not only this, some companies have their own individual websites to cater the personal needs of the people. But, more than 95 percent of these websites are owned by the top players in the company.
The concept delivery system has immensely contributed towards the growth of Gross Domestic Product (GDP) of the country. Not only this, the major companies experienced a major increase in the demand for the customers relies solely on them. Therefore, this was also reflected in the growth of previous year (2014), when the development of top players was continuously increasing whereas on the other hand the demand for the small players was declining.
The Competitive Landscape
It was reported that the demand for online delivery products such as gift delivery, grocery delivery, cake delivery and flower delivery in Dubai experienced major growth. The main reason of this growth was due to the increase in the number of an expatriate in Dubai and fast & convenient delivery services offered by the brands. Most of the outlets have extended their premium services to outlet services.
Most of the local stores, shops, restaurants and outlets extended their wide range of products and services online to different segments for cooked foodstuffs, ready-to-cook foods, cafeterias, banks, bakeries, dry cleaning, music shops, medicines, flower shops and more, to cater the demand of the delivery business.
The trend of online delivery, home delivery or takeaway has highly impacted on the fast food restaurants outlets negatively. Nowadays, most of the individuals order online delivery instead of going to nearby fast food restaurants outlets. Therefore, the market size and share value of restaurants experienced a major decline last year.
Below are the few examples of the services that are currently trending in UAE, Dubai:
1. Organic Seasonal Fruits and Vegetables- Organic farmers in Dubai grow best organic fruits, seasonal produce and vegetables, delivery products to home through a process of ordering online.
2. Flower ad Gifts- Using different online websites to flower delivery Dubai style. They provide a wide range of flowers and gifts solution for the customers.
3. Fast food- There are many online restaurant directories that caters more than 2 lakh list of restaurants to choose from, offering multi-cuisines in Dubai.
The Future Prospects
A continuously increasing demand for home delivery services will further impact in the decline of demand for outlets. Furthermore, the outlet services business is, however, catering an influx of tourist only. The main contribution of the countries logistics players provide practical, managerially and the political possibility of the businesses.