The business structure of the delivery service business in Dubai, UAE has been in the evolution process for the past few years. The thought of having anything delivered to your house, be it groceries, or something fragile, is what attracts the UAE people now after the pandemic. Out of all the industries, one industry that is taking the delivery service to new heights is food delivery service.
It is estimated that by 2026 the online usage of food delivery services in Dubai may reach 5.5 million users. So, there is no doubt to question the rise in the delivery service business in Dubai, especially, the food delivery business setup in Dubai.
With all, it is also important to know that the department of economic development has changed its given name to a new name to “delivery service” activity. And it is known listed as “home delivery services.” however it is still under the category of delivery services that are permitted once you will get a professional business license in the UAE.
If you are someone who is interested in starting a delivery service business in Dubai, now is the right time. Here in this article, we have covered everything you need to know related to getting the delivery service trade license in Dubai, UAE, its process, cost, and else.
The requirements to start a food delivery service business in Dubai, UAE?
Starting a delivery service business in Dubai requires some careful planning and forethought since after covid-19 the market has drastically changed. The following are the preliminary requirements to establish and run a profitable delivery service business in Dubai.
A reliable booking and delivery app or platform:
The purpose of delivery service is to fill the gap between the provider and the consumers. As you want to start a delivery service business, you must find a reliable delivery platform that you can trust and it helps you cater to the customers’ and providers’ expectations.
Trained delivery drivers:
Drivers are the building blocks of your delivery service business. They can either make or break your whole UAE business. So, make sure the drivers you are choosing are not only experienced but also efficient who can drive safely and smartly.
Order tracking system:
To build and keep the trust of your customers, you have to get transparent. Using a live order tracking system or apps is a great thought. Food delivery apps like careem, zomato, Talabat, or uber eats are used to keep customers posted with all the updates related to their delivery packages in the food and beverage industry. Customers can directly contact the delivery people on WhatsApp for their parcels. You can also set up your courier, catering business, or UAE food delivery app.
Use of technology:
Knowing the whole city and its every street is nearly impossible, especially in a city like Dubai. Thus, drivers cannot remember the address of each order along with other package details since they are handling more than one package at one time.
Therefore, using smartphones is the best and most timely decision to make when you start a food delivery service. With the help of maps, it will be easy to reach the destinations and it will save time. And as a result, the trust, and efficiency of your team will be boosted.
When there is business, there will be problems. So, to solve them you need a management system that works as business support. In case of misplacement of the order, the wrong delivery address, and a problem with food delivery services. The food is not to the mark or similar issues. So, to deal with the customers’ complaints, you need to build up a 24/7 right support system that makes sure the problems of the customers are getting resolved within time and without hassle. It can be done within the delivery app as well.
All of these steps are essential if you want your food delivery service business in Dubai to be successful.
The partners for delivery service business in Dubai
In Dubai, there are a variety of partners that you can choose from when setting up a delivery service business. With the right partner, you can have access to reliable delivery services and competitive pricing.
You can make the partnership with:
- Flowering and bouquet shops
- Online product stores
- Restaurants, coffee shops, bakeries, and ice cream parlors
- Household businesses
The process of starting a delivery service license in Dubai
What will be the legal structure and location of your delivery service business in Dubai?
The delivery service license in Dubai will be issued as a professional or LLC structure based on your choice of legal structure.
Look at the pros and cons of both licenses. You can take the help of company formation consultants like Vigor who can guide you about which license will be more lucrative for your business model.
With that, you also have to choose where you do you to start your delivery service. There, again you have two options: Dubai mainland, or Dubai free zones.
Both of these jurisdiction offers specific advantages.
What will be the company name of your business?
Your delivery service business in Dubai can’t run with a legal and approved name. Follow the naming rules before submitting the 3 options of legal names. Out of three, the DED will approve based on the preset naming conventions and regulations.
What is license registration?
A delivery service license in Dubai will surely be a professional license. There will be a lot of paperwork to do for license registration. Contact us at Vigor corporate services for a free consultation to ensure all the paperwork is done right and all the approvals are acquired.
Who is your potential partner?
To run the delivery service business in Dubai, get your partners on board. You can collaborate with your partners before or after getting your professional delivery service license in Dubai.
Running a delivery service in Dubai requires you to get a team. The team has to be efficient, skilled, and well-learned at what they are doing to do.
Bank account opening for payment and integrating a payment gateway
For delivery payments, you need to incorporate a payment gateway in your delivery service delivery app and open a corporate bank account.
We at Vigor consultancy have been handling such matters for many clients now. From taking care of documentation to the process of license registration, we can help you with each matter.
You would need to get a visa for yourself and for your family as well. And if you are hiring staff, you will also sponsor them employer visas if the employee is a foreigner in the United Arab Emirates.
Also read: Top business opportunities in Dubai
What documents are required to get a delivery service license in Dubai?
In order to obtain a delivery service license in Dubai, there is a certain set of documents that must be submitted to the relevant authorities.
- Licensing approvals from Dubai economy- free zone authorities
- An original trade license or certificate of incorporation,
- A valid passport or Emirates ID
- A valid commercial registration certificate
- A valid establishment card
- Applicants will also need to provide proof of address such as electricity bills or tenancy contracts.
- It is necessary to provide the company’s business plan and corporate structure
- Any other documents required by the licensing authority must also be provided.
Once all these documents have been collected, they must be submitted to the relevant department along with an application form in order to obtain the delivery service license.
What is the cost of getting a delivery license in Dubai, UAE?
Getting a delivery license in Dubai can cost anywhere between AED 5,000 and AED 10,000 depending on the type of license you require.
You will also be required to pay an annual fee ranging from AED 3,500 to AED 10,000 as well as additional costs for each vehicle that you use in your business. It is important to note that all licenses must be renewed every year and any changes to your business must be reported in order to maintain compliance with the UAE laws.
Why delivery service business in Dubai?
The delivery service business in Dubai has been a rapidly growing industry over the last few years. The city is well known for its bustling economic activities, and the demand for delivery services has grown as a result.
Delivery services provide convenience to customers, allowing them to quickly receive goods and services without having to leave their homes or offices.
Due to the high cost of living in Dubai, many people rely on delivery services to get their groceries and other necessities.
With the emergence of e-commerce businesses in Dubai, delivery service companies are becoming increasingly popular as they provide an easy way of delivering products to customers.
Therefore, starting a delivery service business in Dubai can be highly profitable due to its strong economy, high demand for services, and technological advancements.