Saudi food delivery business to touch $218m
Dubai, September 25, 2013
Otlob.com, a regional online food delivery service, has said that demand for food delivery in Saudi Arabia will continue to expand to reach SR820 million ($218.6 million) by 2020.
This marks a staggering growth of 47 times the current size and is expected to be fuelled by the high gross domestic product (GDP), well-urbanised regions, changing lifestyles and an emerging online culture of a young and tech-savvy population, it said.
Saudi Arabia ranks third in terms of smartphone penetration globally, ahead of countries like the US, Britain, France and Germany and 64th in terms of internet penetration.
Sami Zaki, general manager, said: "The consumer food service sector in Saudi Arabia has been growing tremendously, and is expected to continue on the same trajectory. Estimated at a total value of SR26 billion, the growth of the sector is driven by a young futuristic population, rising purchasing power and internet connectivity and modern and changing lifestyles.
“This presents a tremendous opportunity for both the delivery/take-away subsector which is estimated at 23 per cent of the total market, or about SR6 billion.”
“Restaurants and food chains in Saudi Arabia realised that the time is right to have a fresh look at their business model in order to capture the latest online and digital trends. Being one of the global pioneers of online food ordering, Otlob.com is assisting these food outlets in launching new revenue streams through online and mobile platforms,” Zaki added.
Otlob.com has so far curated over 400 restaurants and food outlets for the Saudi consumers in Riyadh, Jeddah, Dammam and Al Khobar. - TradeArabia News Service
More Miscellaneous Stories
- Top pizza chain plans big UAE investment
- WTO overcomes last minute hitch to clinch key deal
- UAE food expo nets $544m deals
- Bleak outlook for WTO deal as rift widens
- Cargill picks top ME banker for Asia role
- Raytheon sees $5bn Mideast orders in 'weeks'
- Civil servants may get 20pc pay increase
- Bikers Cafe launched in Fujairah
- N Irish seafood firms eye Mideast market
- UAE experts warn of rising child abuse