Saudi Arabia Delivery Apps Market Size (2024 - 2029)

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 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.