Starting a Food Delivery Service Business Setup in UAE
It is widely known that the UAE’s food delivery service and beverage Business Setup in UAE is massive, and it is only projected to grow. According to estimations, the F&B market is worth roughly AED 142 billion, with growth expected to reach AED 145 billion by 2021.
Meal delivery subscriptions are becoming increasingly popular among people and families, owing to their convenience. Furthermore, unlike their fast food and restaurant delivery equivalents, food delivery service give home-cooked meals, which are healthier options.
According to a recent survey, 60% of UAE consumers use an app to order food, compared to only 18% in the United States. The recent news that Zomato has sold its UAE meal delivery business for USD 172 million highlights the market’s strength. Meanwhile, Careem, a UAE startup success story, has revealed ambitions to fund USD 150 million to launch a food delivery arm in order to get into this lucrative industry.
The meal delivery business gives a significant opportunity for entrepreneurs with the skills and know-how to see success in the food and beverage industry, based on the number and overall future trends. If that describes you, there’s more good news: applying for a food delivery license in Dubai can be simple with the correct help.
Guidelines for Starting a Food Delivery Service in the United Arab Emirates
- If a restaurant can produce 150 to 250 orders per day through online platforms, it is likely to be able to negotiate a commission rate of 15-18% of the transaction value;
- The internet platform has a vested interest in actively promoting the outlet on its platform.
- It may run above-the-line advertising with the F&B brand once more;
- To improve the customer experience, the platform monitors the restaurant’s performance through weekly MIS (Management Information System) reports and performance data.
- To promote the restaurant, even more, it may offer free delivery and commission weeks.
However, if the restaurant’s order volume is poor, the operator will be required to pay a commission of 25-30%.
Incorporating a Food Delivery Service in the United Arab Emirates
With increasing concerns about COVID-19’s impact on the food and beverage Business Setup in UAE, timely delivery is more important than ever. The following are the stages to starting a meal delivery service:
- Make a decision about the type of business you want to run. The most important factor is that your chosen activities correspond to those listed by the Department of Economic Development (DED).
- Make a decision on a commercial name. Be advised that in the UAE, you must follow a stringent set of name regulations. In a nutshell, you should refrain from using rude or obscene language. If you’re naming your company after yourself, stay away from well-known corporate names and abbreviations. You should also double-check that the name you want to use is available for registration.
- You can submit an application for a business license in UAE. You’ll need to give a few pieces of information as well as some important documents, such as:
- Completed application form
- Passport copy of the proposed owner or owners
- Two-color passport size photos
- Finally, you’ll need to apply for a UAE residency visa unless you already have one. With the appropriate assistance, the visa application procedure, like filing for a business license, may be surprisingly simple.
Constructing a Food-Delivery App
The most important aspect of starting a food delivery service business is having a viable application. Accepting orders solely by phone or website will exclude you from a vast market, thus developing a mobile app is essential. True, developing an app incurs additional expenses, but it is money well spent given the added level of convenience it provides to your customers.
So, first and foremost, you should have a thorough understanding of the UAE and client trends. This is a good place to start your research.
The ideal solution here is to work with an established company that specializes in mobile app design unless you have app-building skills. Costs vary greatly depending on the level of functionality and design you require. The trick is to collaborate with developers who want to see you succeed.
Working with a business setup expert can help you get your food delivery service up and operating quickly. Your app could help bring a range of Dubai cuisine into people’s homes, as more people desire to avoid eating out.
Radiantbiz can assist you with obtaining a license for your food delivery service in the United Arab Emirates. For additional information, please contact us immediately.