The landscape of the delivery service industry has undergone significant transformations in recent years. The convenience of doorstep delivery, spanning from daily essentials to a diverse range of products, has captured the attention of countless individuals. Notably, one sector that has harnessed the potential of delivery services to the fullest is the food industry.
Reports indicate that the user penetration of online food delivery in the UAE is on a steady rise, projected to increase from 31% in 2021 to 32.7% by 2025. Moreover, the number of users in the online food delivery segment is anticipated to reach 5.5 million by 2026. This escalating demand underscores the flourishing future of the delivery service business.
Crucially, it’s worth noting that the Department of Economic Development has rebranded the “Delivery Service” category as “Home Delivery Services.” Although the name has changed, it remains under the “Delivery Services” category and necessitates the acquisition of a professional license.
If you’re considering obtaining a delivery service license in Dubai, there’s no better time to do so. In this blog post, we will guide you through the process and outline the associated costs of securing a delivery service license in Dubai.
Table of Contents
What Will You Need to Start a Dedicated Delivery Service?
Essentials for Launching a Dedicated Delivery Service:
- Efficient Delivery Platforms: You need a platform where customers can connect with service providers, facilitating seamless transactions.
- Trained Delivery Fleet: Your delivery team is the backbone of your service. Ensure they are well-trained and capable of safe and efficient deliveries.
- Live Order Tracking: Implement a live order tracking system to keep customers informed about their orders, enhancing transparency and satisfaction.
- Smartphones for Drivers: Equip your delivery fleet with smartphones to aid navigation, order tracking, and efficient communication with customers.
- Customer Support: Establish a 24/7 customer support system to promptly address any issues or concerns, fostering strong customer relationships and resolving problems effectively.
Who Can Be Your Potential Partners for Delivery in Dubai?
Potential Partners for Your Dubai Delivery Service:
- Restaurants, Cafes, and Parlours
- Online Stores
- Home Businesses
- Flower Shops
- Corporations
Step-by-Step Guide to Obtaining a Delivery License in Dubai
Gather Required Documents:
To initiate the process, you will need specific documents, including preliminary approval from the licensing authorities (Dubai Economy or Free Zones), copies of partners’ passports, Emirates ID for citizen partners, valid visit or residence visa for partners, and a No Objection Certificate (NOC) from the sponsor if the partner is a non-GCC citizen.
NOC and RTA Permit:
Once the above documents are cleared, the Roads and Transport Authority (RTA) will release an NOC, allowing you to proceed to the Department of Economic Development (DED) for license completion. An RTA permit is required, which costs approximately AED 1,000 and typically takes 3-5 days.
License Costs:
The final cost of the delivery service license in Dubai varies based on multiple factors and locations, making it challenging to provide an exact figure. Generally, the cost can range from AED 5,000 to AED 10,000, exclusive of sponsorships and additional fees.
If You Want to Get a Delivery Service License in Dubai! Send Us Your Inquiry
Starting a Delivery Business in Dubai – A Step-by-Step Guide:
#1. Determine Legal Structure and Location:
Choose between a professional or LLC structure for your delivery service business. Decide whether you want to establish your business in the Mainland or Free Zones, considering the pros and cons of each.
#2. Select a Legal Name:
Ensure your business has a compliant legal name, adhering to government regulations and naming rules.
#3. Apply for a License:
The delivery service in Dubai typically requires a professional license. Begin the application process, which may involve obtaining preliminary approvals from relevant authorities.
#4. Find Potential Partners:
Seek out potential partners to collaborate with for your delivery business, either before or after receiving your license.
#5. Hire Staff:
As your staff and delivery fleet are crucial to your business’s success, ensure they are well-trained, skilled, and professional.
#6. Establish Payment Infrastructure:
Integrate payment gateways for your delivery service and open corporate bank accounts. Company Setup experts can assist with bank account setup and related documentation.
#7. Visa Application:
Apply for visas for yourself and your family. If you plan to hire employees from abroad, be prepared to sponsor their visas as well.
Navigating the process with the support of experts, such as Company Setup Consultants, can simplify the complexities and ensure a successful launch of your delivery business in Dubai.
Why Start a Food Delivery Business in Dubai, UAE?
Delve into the thriving food industry of Dubai, where culinary ventures stand as lucrative opportunities for entrepreneurs.
#1. Market Potential
Dubai boasts a diverse culinary scene, with a myriad of cuisines available in luxurious malls and bustling streets. In the UAE, the inclination towards food delivery over traditional dining experiences is prevalent among consumers. This underscores the immense market potential for food delivery businesses in Dubai, promising substantial profits.
#2. Low Start-up Costs
Embark on your entrepreneurial journey with minimal initial investment. Establishing a food delivery business in Dubai requires relatively low start-up costs, ensuring favorable profit margins from the outset. The primary expenses revolve around food delivery app development, while marketing expenses remain modest, leveraging cost-effective strategies like flyers and branded delivery vehicles for visibility.
#3. Flexibility
Experience the flexibility of managing a food delivery venture, allowing for a balanced work-life dynamic. Once the licensing and registration formalities are complete, focus shifts to maintaining operational efficiency, financial management, and fostering a stellar customer service team. This adaptable approach empowers entrepreneurs to navigate the business landscape with ease and efficiency.
How much is a delivery service license in Dubai?
The cost of obtaining a delivery service license in Dubai typically ranges from AED 20,000 to AED 30,000. This cost can vary based on factors such as the type of business setup, the specific trade license selected, government fees, and other related expenses. A delivery services trade license alone can cost between AED 8,000 and AED 15,000.
Kickstart Your Delivery Business with Company Setup
While acquiring a delivery service license in Dubai may appear straightforward, seeking the guidance of experts can streamline the process. Company Setup’s knowledgeable experts possess a comprehensive understanding of establishing businesses in Dubai and securing the necessary licenses. They will manage all the essential requirements, approvals, and paperwork on your behalf. Your role is simply to reach out to them and get started.
For further information and assistance on How to Get a Delivery Service License in Dubai , speak with our experienced consultants. Book your FREE consultation today at +971582595164, +97145187213 or drop us a line on info@companysetup.ae