Middle East’s largest online food ordering company Talabat intends to double the number of riders in the UAE to shorten delivery times and adding new services on its app to tap into the potential of “quick commerce.”
Mr. Jeremy Doutte, Vice President of Talabat’s UAE division, said in a statement that the food and grocery delivery app aims to raise the number of riders to 30,000 by the end of the year, up from 15,000 currently, to reduce delivery times to 15 minutes.
According to a study, Online food and beverage sales in the UAE increased by 255 percent year on year in 2020 to $412 million. The value of online food and beverage sales in the country is expected to reach $619 million by 2025 and record a compound annual growth of 8.5 percent in the period between 2020 and 2025.
“The online platform is also considering adding more services on its app, as it seeks to diversify its offerings and increase the frequency of customer orders by 50 percent by year-end. The delivery of medicine prescriptions or the offer of at-home COVID-19 testing services. Research, trials, and customer focus groups will guide the new offerings. Talabat may not reach the target number of riders this year due to COVID-19-related travel restrictions on key source markets such as India combined with the long timeframe to acquire driving licenses and complete training. Talabat’s riders are provided by third-party logistics companies.”
Furthermore, Talabat will expand its cloud kitchens as part of its UAE expansion plans. Talabat aims to add 12 cloud kitchens, in addition to its existing seven units, by the end of this year as they assist cut costs and enhance operating margins, Mr. Doutte added.
Established in Kuwait, Talabat operates in markets in the Middle East and North Africa, including the UAE, Saudi Arabia, Oman, Bahrain, Qatar, Egypt, and Jordan.