MENA Online Food Delivery

MENA Online Food Delivery

The online food delivery market in the MENA region has witnessed exponential growth in recent years, fueled by technological advancements, changing consumer preferences, and increasing internet penetration. Defined as the process of ordering food from a restaurant through a website or mobile application, online food delivery has become increasingly popular across MENA countries due to its convenience and accessibility. The market's growth can be attributed to several factors, including the region's young population demographic, rapid urbanization, rising disposable incomes, and a burgeoning middle class with busy lifestyles. Additionally, the COVID-19 pandemic further accelerated the adoption of online food delivery services as lockdown measures and social distancing guidelines encouraged consumers to opt for contactless dining options.

The MENA online food delivery market is expected to grow at a steady rate of around 20.5%. The presence of numerous international and regional food delivery platforms competing for market share has intensified competition, leading to innovations in service offerings, delivery efficiency, and customer experience. As a result, the MENA online food delivery market is poised for continued expansion, with forecasts predicting sustained growth driven by technological advancements and evolving consumer preferences. For instance, Delivery Hero announced the acquisition of all outstanding minority shareholdings in HungerStation Holding Limited, the sole shareholder of HungerStation Company Ltd in Saudi Arabia, which operates Delivery Hero's Saudi business. The transaction, worth USD 297 million, was considered a highly attractive purchase price by Delivery Hero.

• Based on the platform, the market is segmented into website and mobile application. Among them, the mobile application category growing at a significant rate during the forecast period. this is mainly due to the mobile apps providing a streamlined platform for users to browse menus, track orders in real-time, and receive notifications regarding discounts and promotions. Additionally, mobile apps provide a streamlined platform for users to browse menus, track orders in real-time, and receive notifications regarding discounts and promotions. Overall, the widespread adoption of mobile applications has significantly contributed to the growth and expansion of online food delivery services in the MENA region.
• Based on the payment method, the market is segmented into online and cash on delivery. Among them, the online category is expected to dominate the market during the forecast period. Due to the growing penetration of internet and smartphone usage in the region, online payment methods such as credit/debit cards, digital wallets, and bank transfers provide a seamless and hassle-free way for customers to complete transactions. Additionally, online payments enable businesses to offer advanced features such as pre-ordering, recurring billing, and subscription services, further enriching the online food delivery experience and driving customer loyalty.
• For a better understanding of the market adoption of the MENA digital health industry, the market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Qatar, Egypt, Kuwait, and the Rest of MENA Countries. Saudi Arabia is expected to dominate the growth of the market during the forecast period With the Vision 2030 initiative driving digital transformation, the country has seen increased connectivity, making it conducive to the growth of online platforms. Opportunities abound as the market explores AI-driven personalized recommendations and embraces data analytics for enhanced customer experiences. The evolving technological ecosystem in Saudi Arabia positions it as a hotbed for further innovation in the online food delivery domain. For instance, in 2022, the Saudi food delivery platform Jahez signed an agreement to acquire Chefz, one of its major rivals in the region to strengthen its position in the fast-growing online food delivery market in Saudi Arabia.
• Some of the major players operating in the market include MRSOOL Inc.; Jahez; Careem; noon; Lugmety; Deliveroo; Delivery Hero SE; Cari General Trading Company; Foodchow; Eateasily Online DMCC