10 Sunrise Sectors Post COVID-19 Series | The Growth of Food & Grocery Delivery Business in the UAE

3rd Sunrise Sector: Food Delivery Business

Traditional businesses are at crossroads now as critical decisions have to be taken to ensure business continuity amid the economic downturn precipitated by the COVID-19 global pandemic. At the time of writing this article, nearly 5 million people have been reported to be infected with the virus across the world and all the economic superpowers are struggling to combat the spread. To counter the fast spread of the infection, almost all the countries, including the UAE, have executed continuous lockdowns and social distancing measures which led to the closures of businesses such as the restaurants. The traditional businesses in the UAE are reeling under pressure, but hope persists as new sectors are emerging victorious amidst the chaos. Food and Grocery delivery services are witnessing an unprecedented surge in demand due to people prefer to stay at home for longer hours to curb the virus infection. Entrepreneurs who wish to set up a business in the food or grocery sectors need to incorporate robust delivery services to turn in a profit in the UAE.

Why Food and Grocery Delivery Services Are in Demand in the UAE During the COVID-19 Period?

Setting up a business in the F&B sector has been a profitable opportunity as the population of the UAE has a reputation for being ardent food lovers. The locals, residents, and tourists loved the dining out experience and had no qualms in spending money to have the best culinary experience they could have. However, the onslaught of the novel COVID-19 virus has had a huge impact on consumer behaviour due to the lockdown policy enforced by the government.

People were asked to stay at home to avoid human contact thereby curbing the infections. The restaurants were told to shut the dining services. However, since the food is an essential requirement, the consumers turned to online delivery services to order their favourite food items. People were able to eat what they wanted despite the restrictions on going out thanks to the food delivery services.

The same is the case with the grocery services albeit with a slight difference. The supermarkets were exempted from the movement curbs as grocery has been put under essential services. The grocery stores were open with some restrictions. Safe distancing measures were implemented and large numbers of people were not allowed in the supermarkets for the fear of infection. Given the risk of infections at the supermarkets, the consumers in the UAE started relying on online grocery delivery services.

Favourable Factors Helping the Growth of Food/ Grocery Delivery Businesses in the UAE

Historically, the crisis situation has been the ideal time for new opportunities to emerge. Setting up a business in Dubai, UAE amidst a crisis is not a bad idea if the investors understand the market and know how to turn the crisis into opportunities. The following are some of the reasons why it is recommended to start a food or grocery delivery service in the UAE.

1. COVID-19 to Stay Longer

Starting a food or grocery delivery service is a lucrative business opportunity as the CIVID-19 situation is likely to stay here for a long time as no vaccines have been invented yet. The WHO has confirmed that the world has to learn to live with the COVID-19. Since a new normal has been established, the new patterns of buying are also likely to persist and stay relevant for a long time.

2. Demand for Essential Items Never Fades

Food and groceries are among the most essential items that are a must for the survival of the people. Under a crisis situation, consumers may be forced to cut down the spending on luxuries but they will never stop purchasing food and groceries. Also, the UAE is home to residents from over 200 nationalities and the spending will never stop. The only major change is the mode of buying. The consumers now prefer the contactless delivery of essential items, which enhances the growth prospects of food/ grocery delivery companies.

3. Robust Digital Infrastructure in the UAE

The UAE is a highly advanced nation in terms of technological progress. The country has a dedicated strategy for technology and supports the IT industry in the best possible ways to develop a robust digital environment in the country.  A highly developed IT industry is helpful for the food and grocery delivery firms as efficient apps help in quick delivery. The UAE has top-quality internet service, high rate of digital penetration a tech-savvy population that supports the growth of online delivery of essential items. With the growth of digital payment options, the food and grocery delivery companies are able to ensure contact delivery.

How the Food and Grocery Delivery Service Businesses can Ensure Sustained Growth

Even though the current crisis is a great favourable factor for the food and grocery delivery services, the demand may lead to competition in the near future. In such a situation the companies need to develop certain strategies to win over the consumers. The following is a list of strategies they need to deploy to win the market:

  1. Provide a seamless customer experience
  2. Eliminate logistics and supply chain obstacles
  3. Develop strategies to attract the millennials
  4. Provide contactless delivery

Why Choose Jitendra Business Consultants?

Though the COVID-19 is likely to stay for a longer period across the world, the current economic uncertainty need not deter the aspirations of the entrepreneurs who wish to start a company in Dubai, UAE. The UAE has always been a land of opportunities and will continue to stay so due to the proactive policies of the government. The UAE government has responded well to the situation and hinted at a digitally-driven recovery process. On the back of these factors and with the emergence of sunrise sectors including the food and grocery businesses, the business setup opportunities in the UAE look positive. However, starting a business in Dubai, UAE is a complex process that needs the assistance of a reputed company formation specialist like Jitendra Business Consultants (JBC). Expert assistance is needed while handling the processes of obtaining a business license and securing approvals from the concerned authorities. JBC’s business setup consultants are well-versed in all the UAE laws and regulations which would ease the difficulties in the company formation process. JBC guarantees quick and efficient business set up procedures for the investors wishing to open a business in Dubai, UAE

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