Food De­liv­ery

Arabnet - The Quarterly - - Industry Stories -

Gro­cery De­liv­ery

Ac­cord­ing to Nielsen’s Global Ecom­merce and New Re­tail Sur­vey, one-quar­ter of global re­spon­dents said that they are al­ready or­der­ing gro­cery prod­ucts on­line for home de­liv­ery, and more than half said that they are will­ing to do so in the fu­ture. More­over, the per­cent of re­spon­dents will­ing to use dig­i­tal re­tail­ing op­tions was high­est in de­vel­op­ing mar­kets, par­tic­u­larly in MENA (58%). Among the difffff­fer­ent food de­liv­ery busi­ness mod­els, gro­cery de­liv­ery star­tups are cur­rently the most prom­i­nent and pop­u­lar in MENA, with over 41 unique star­tups across 10 mar­kets (al­most 50% of all food de­liv­ery mod­els). The con­ve­nience as­so­ci­ated with or­der­ing gro­ceries on­line and hav­ing them de­liv­ered has led to a surge in gro­cery ecom­merce so­lu­tions in the re­gion over the past few years as well as an in­crease in con­sumers (par­tic­u­larly mil­len­ni­als) who pre­fer to do gro­cery shop­ping on­line.

Gro­cery de­liv­ery star­tups in MENA have also at­tracted sig­nif­i­cant fund­ing over the past few years. Lead­ing play­ers Goods­mart (Egypt), Knock Mart (Egypt), In­stashop (UAE), El Gro­cer (UAE), and Todoorstep (KSA) have col­lec­tively raised more than $4.4M in fund­ing since 2015, and Uae-based El Gro­cer also ac­quired live or­der­ing plat­form Quick­ last year as part of its ef­forts to en­hance its ser­vices.

Restau­rant De­liv­ery

By pro­vid­ing cus­tomers with greater choices and con­ve­nience and re­shap­ing the restau­rant in­dus­try, restau­rant de­liv­ery star­tups are dis­rupt­ing the busi­ness of food de­liv­ery. Ac­cord­ing to data from CB in­sights, restau­rants us­ing on­line or­der­ing have seen a 30% in­crease in rev­enue, and on­line food or­der­ing is ex­pected to in­crease by more than dou­ble to 58% over the next three years.

Among the dif­fer­ent food de­liv­ery mod­els, restau­rant de­liv­ery is the old­est in the re­gion. Kuwait-based restau­rant de­liv­ery ser­vice Tal­a­bat, which was ac­quired by Rocket In­ter­net in 2015, was founded in 2004 and was the first of its kind in MENA. To­day, the re­gion is home to more than 38 unique restau­rant de­liv­ery star­tups across 10 diff­fer­ent mar­kets, with over 14 star­tups in the UAE alone.

Although fund­ing in restau­rant de­liv­ery star­tups has slowed both glob­ally and in the re­gion, M&A ac­tiv­ity among restau­rant de­liv­ery star­tups has seen a mas­sive in­crease. In the past three years, the re­gion has wit­nessed the ac­qui­si­tion of 6 restau­rant de­liv­ery star­tups (24h. ae, Car­riage, Tal­a­bat, Ot­lob,, Foodonclick, and Hunger Sta­tion) by Berlin tech gi­ant Rocket In­ter­net as well as Rocket In­ter­net-backed com­pa­nies De­liv­ery Hero and Ju­mia Group.

Pre­pared-meal De­liv­ery

Pre­pared meal de­liv­ery star­tups de­liver pre-cooked meals to users, and dif­fer from restau­rant de­liv­ery star­tups in that they of­fer a few daily meal op­tions that are usu­ally pre­pared at a cen­tral kitchen man­aged by the star­tups them­selves. In­spired by the clean cui­sine trend, pre­pared meal de­liv­ery star­tups are among a new wave of com­pa­nies that are look­ing to pro­vide health­ier op­tions while re­main­ing con­ve­nient and trans­par­ent about nu­tri­tional val­ues.

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