December 22, 2021
The eCommerce industry has witnessed massive popularity in the past few years globally including in Dubai & UAE. Dubai Chamber of Commerce & Industries revealed that the UAE retail e-commerce market reached a record $3.9 billion in 2020, a 53% year-over-year increase driven by the Covid-19-led digital shift, while e-commerce accounted for an 8% share of the retail market during the same year.
The eCommerce giants like Amazon, Flipkart, and Alibaba have clearly proved that eCommerce is here to stay and it is the future. According to the Mastercard Study, 73% of UAE consumers have been shopping more online since the start of the pandemic. The pandemic has resulted in a high trend for online shopping. The boom in the eCommerce industry has automatically generated demand for courier services in most countries. UAE is one of the countries which has shown a significant rise in the eCommerce delivery business during the covid era due to a huge load of online orders. The growth is remarkable in Dubai, where 3 out of 5 consumers have confirmed their shopping has become more eCommerce driven since the start of the pandemic.
It is an undeniable fact that the virus outbreak has brought a big change in the idea of buying and selling. Consumers who used to prefer destination shopping before the pandemic, have now adopted the digital shopping method. Although the pandemic played a pivotal role in increasing the demand of eCommerce delivery businesses, it certainly is not the only reason behind the growth. People rely on e-stores because of many other reasons that include 24*7 availability, no traveling hassle, huge variety, shopping under the comfort of home, and multiple payment options.
While expressing his views in the national news agency WAM, Ahmed Mahboob Musabih, Director-General of Dubai Customs, stated “We expect e-commerce sales to rise 23 percent to US$27 billion (AED100 billion) in 2022, especially since there is a noticeable shift in the consumers’ trends and behavior after the pandemic,”. According to him, Dubai has the potential to become a central eCommerce hub for African, Gulf, Middle Eastern, and South American markets.
So, what is the future of delivery businesses in Dubai? What will be the scenario post-pandemic? What can you expect in the upcoming years? All these questions will be answered in this article.
Present scenario of delivery businesses in Dubai
The pandemic is still not over, and the courier companies are earning quite well with their pick-up and delivery services. Currently, delivery companies in Dubai are offering multiple delivery options to their clients keeping their requirements in mind. Some companies even provide the facility of same-day delivery with an additional cost. A study revealed that almost 25% of consumers prefer same-day delivery whereas more than 75% go for the cheapest delivery option. Again, it sometimes depends on the type of products that are being ordered. For example, when it comes to products like medicines, groceries, etc, buyers look for same-day delivery. On the other hand, in food delivery businesses, instant delivery facilities remain the only choice.
Future of eCommerce delivery businesses in Dubai
It would not be wrong to say that digital transformation has touched almost every industry on earth. The logistic industry is also not an exception to this. Considering the nature of the diverse population in Dubai, here are the developments that you can experience in the delivery services in Dubai in the future.
- RFID technology
New developments are continuously taking place in the field of logistics with the goal of increasing delivery speed, reducing errors, and protecting inventories from theft and other damages. Radio Frequency Identification is a wireless serial number identification system that sends information through radio frequency. It offers error-free real-time data and reduces the amount of labor and time required in logistics settings.
- Drone delivery
Drone delivery can be the next big thing in the delivery services in Dubai. The idea was first introduced in the year 2017 which is expected to dominate the logistic industry in the future. This new style of delivery will not only decrease the delivery cost but also speed up the delivery process. Besides this, it could be an eco-friendly delivery method as well. When it meets with the strength of IoT, it can easily find out the receiver’s area and hand over the parcel to him or her without any hassle.
- Driverless vehicles
A lot of speculations are already there about driverless vehicles that can redefine the idea of parcel delivery. These cars can make the entire delivery process faster and efficient. They could also increase business revenues by cutting down the labor costs. As the idea is still not fully developed, businesses need the support of a driver who can look after these vehicles and unload the parcels once a driverless vehicle reaches its destination.
- Augmented reality
Augmented reality can contribute a lot to your logistics business by boosting up its productivity and cost-effectiveness. It significantly improves your warehousing activities like packing, loading, and freight picking. Wearable AR devices can help understand the volume of freight items with their powerful sensors. It also has the capacity to identify damage if there is any.
Due to the growing craze of online shopping in Dubai, every industry including logistics has realized the importance of automation. The buyers’ gradual inclination towards online shopping will help the eCommerce delivery businesses to grow further in Dubai in the future. In order to keep customers engaged in shopping, eCommerce companies offer amazing deals and discounts on a regular basis that are hard for them to miss. This makes a healthy flow of online orders keeping the courier companies busy throughout the year.
The eCommerce delivery business has an impeccable space for growth and development in the UAE. The pandemic may have played the role of a catalyst in the sudden increase in demand but UAE was already prepared to handle a genuine online delivery business flood. So, there is no doubt that the eCommerce delivery business has a rock-solid future in the UAE.
If you have an eCommerce business in Dubai and are looking for the best delivery service for your business, you can contact us at deliv. We provide multiple delivery options to our clients and aim to offer the best courier service for eCommerce businesses.