Saudi Arabia Delivery Apps Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Saudi Arabia Delivery Apps Market Analysis

The Saudi Arabia Delivery Apps Market size is estimated at USD 8.33 billion in 2025, and is expected to reach USD 17.05 billion by 2030, at a CAGR of 15.4% during the forecast period (2025-2030).

The Saudi Arabian delivery apps ecosystem is experiencing a robust transformation, driven by unprecedented digital adoption and changing consumer behaviors. According to the Communications, Space and Technology Commission, internet penetration in the kingdom reached nearly 99% by the end of 2023, while mobile connections amounted to 134.1% of the total population in January 2024. This digital infrastructure has created a fertile ground for delivery apps, with the Transport General Authority reporting over 200 million delivery operations performed in 2023 through 37 licensed companies operating in the sector.

The market is witnessing significant consolidation and foreign investment, reflecting its growing strategic importance. In July 2023, Delivery Hero SE strengthened its position by acquiring the remaining 37% stake in HungerStation for USD 297 million, while Chinese giant Meituan entered the market in April 2024 with its food delivery platform KeeTa in Riyadh. These strategic moves are reshaping the competitive landscape and bringing international expertise to the Saudi market, ultimately benefiting consumers through enhanced service offerings and technological innovations.

The rapid evolution of quick commerce and express delivery services is revolutionizing consumer expectations and operational models. Companies are increasingly focusing on rapid delivery solutions, with many businesses pledging instant delivery times as fast as 10-15 minutes from order placement. This trend has catalyzed the growth of cloud kitchens, exemplified by Rebel Foods' entry in July 2023 with two cloud kitchens in Riyadh, aiming to establish a USD 100 million food delivery apps operation over three years.

The market's growth aligns with Saudi Arabia's broader economic diversification goals and digital transformation initiatives. The government's ambitious target to increase the contribution of modern commerce and e-commerce to 80% in the retail sector by 2030 underscores its commitment to digital advancement. However, the sector faces macroeconomic challenges, with an inflation rate of 2.47% in 2022 affecting operational costs and consumer spending patterns. Despite these challenges, the market continues to evolve through technological innovation and strategic partnerships, as evidenced by Talabat's recent collaboration with Truecaller in April 2024 to enhance customer safety and streamline business communication through advanced delivery tech solutions.

Saudi Arabia Delivery Apps Market Trends

Rise in Smartphone Penetration Fueled the Growth of the Market

The increasing smartphone penetration in Saudi Arabia has become a fundamental driver for the mobile delivery apps market, with mobile connectivity reaching unprecedented levels. According to GSMA Intelligence, the country recorded 49.89 million cellular mobile connections at the beginning of 2024, representing an impressive 134.1% of the total population. This extensive mobile penetration has created an ideal environment for mobile delivery apps to thrive, as more consumers are accessing various services through their smartphones. The surge in connectivity is further evidenced by the 2.5 million increase in mobile connections between 2023 and 2024, marking a significant 5.3% growth that has directly contributed to the expansion of digital services.

The robust digital infrastructure is complemented by exceptional internet penetration rates, which reached 99% by the end of 2023, according to the Communications, Space and Technology Commission. This comprehensive digital coverage has transformed consumer behavior, with 91% of Saudi consumers actively engaging in online food ordering activities. The widespread adoption of smartphones has enabled delivery apps to introduce innovative features such as real-time tracking, personalized recommendations, and seamless ordering processes. Major e-commerce vendors, including SHEIN, Noon, and Amazon, have capitalized on this trend by developing sophisticated mobile applications that cater to the growing demand for convenient shopping experiences, further reinforcing the symbiotic relationship between smartphone penetration and delivery app adoption.

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

The integration of sophisticated payment gateways has emerged as a crucial driver for the delivery apps market in Saudi Arabia, with digital transactions showing remarkable growth. Mobile phone payments demonstrated an impressive 18% increase to SAR 19.5 billion in August 2023 compared to the previous year, while card purchases reached SAR 31.7 billion during the same period. This surge in digital payments is aligned with the Saudi Central Bank's ambitious Financial Development Program, which aims to achieve 70% non-cash payments by 2025, creating a conducive environment for delivery apps to expand their payment solutions and enhance user experience.

The market has witnessed significant developments in payment technology integration, exemplified by the emergence of innovative solutions such as Tamara's Buy Now Pay Later (BNPL) service and HyperPay's announcement of going public through an IPO in April 2023. These advancements have been complemented by strategic partnerships, such as Talabat's collaboration with Truecaller in April 2024 to enhance customer safety and streamline business communication. The diversification of payment options, including mobile wallets, credit/debit cards, and BNPL services, has made transactions more accessible and convenient for consumers, while advanced security features have built trust and confidence in digital payments. Payment gateways like Tap Payments and PayTabs have further enriched the ecosystem by providing comprehensive solutions tailored to the Saudi market's specific needs. Furthermore, the adoption of digital delivery platform solutions has streamlined operations, enhancing the efficiency of online food ordering and other services.

Segment Analysis: By Service Type

Food Delivery Apps Segment in Saudi Arabia Delivery Apps Market

The food delivery apps segment dominates the Saudi Arabia delivery apps market, commanding approximately 69% market share in 2024. This significant market position is driven by the increasing adoption of smartphones and improved internet accessibility across the kingdom. The segment's growth is further supported by changing consumer lifestyles, particularly in urban areas, where the convenience of doorstep delivery has become increasingly valued. Major players like Jahez, HungerStation, and Talabat have strengthened their presence through strategic partnerships and technological innovations, offering features such as real-time tracking, personalized recommendations, and diverse payment options. The integration of artificial intelligence and machine learning algorithms has enhanced the user experience, while the expansion of cloud kitchens has improved delivery efficiency and coverage across Saudi cities.

Grocery Delivery Apps Segment in Saudi Arabia Delivery Apps Market

The Grocery Delivery Apps segment is emerging as the fastest-growing category in the Saudi Arabia delivery apps market, with a projected growth rate of approximately 18% during 2024-2029. This remarkable growth trajectory is fueled by the increasing preference for convenient shopping solutions and the expanding range of product offerings on these platforms. Companies are investing heavily in advanced logistics networks and warehouse management systems to ensure efficient delivery operations. The segment has witnessed significant technological advancements, including the implementation of AI-powered inventory management and route optimization systems. The integration of features such as scheduled deliveries, real-time tracking, and personalized shopping experiences has further enhanced customer satisfaction and retention rates.

Remaining Segments in Service Type

The Pharmacy Delivery Apps and Other On-demand Delivery Apps segments play crucial roles in the Saudi Arabia Delivery Apps market ecosystem. The Pharmacy Delivery segment has gained significant traction due to the increasing digitalization of healthcare services and the growing demand for convenient access to medical supplies. This segment has been particularly strengthened by partnerships between pharmacy chains and technology providers, offering features like prescription uploads and medication reminders. Meanwhile, the Other On-demand Delivery segment encompasses various services including electronics delivery, courier service app, and specialty item delivery, catering to diverse consumer needs and contributing to the overall market dynamics through innovative delivery solutions and specialized services.