The landscape of the delivery service business has certainly changed in the past years. The luxury of having anything and everything delivered to your doorstep, including your daily essentials, attracts thousands. One industry that seems to leverage delivery services at its best is the food industry.
As per reports, the user penetration of online food delivery in the UAE is expected to rise steadily until 2025. It may jump from 31% in 2021 to 32.7% in 2025. Furthermore, the users in the online food delivery segment may reach 5.5m by 2026. Undoubtedly, the delivery service business will witness a boost with the increasing demand.
It is important to note that the activity ‘Delivery Service” has been renamed on the Department of Economic Development’s list as “Home Delivery Services.” It still falls under “Delivery Services” and requires you to hold a professional license.
Therefore, if you wish to obtain a delivery service license in Dubai, the time is now! In this blog, we will walk you through the process and delivery service license cost in Dubai.
What Will You Need to Start a Dedicated Delivery Service?
Starting a dedicated delivery service in Dubai has a few prerequisites.
Following are the requirements to establish and run a successfully delivery service business:
1. Efficient Delivery Platforms
Delivery services bridge the gap between the provider and the customer. Thus, you must have a platform where the customers can meet the provider.
2. Fleet of Fully Trained Drivers
Your delivery fleet is your cornerstone. As a result, they can make or break your delivery service company. Thus, you must ensure that your fleet can drive safely. Fully trained drivers can drive safely while ensuring the safety of delivery packages.
3. Live Order Tracking System
Your customers must be well informed about their orders. A live order tracking system will enable them to track their orders at any point from start to end.
4. Fleet Equipped with Smartphones
Your delivery partners may not always remember the directions well. Furthermore, it can get hard for them to remember the details if they are out to deliver multiple packages or orders. Providing your fleet with smartphones will solve this issue.
They can use the maps to reach the right location. Furthermore, they can track their delivery orders on the app. As a result, the accuracy and efficiency of your delivery partners will increase. Lastly, your customers can contact their respective delivery agent or vice versa.
5. Support
What if there is a problem with the order? For instance, the package was open when it was delivered, the food from the restaurant was unhealthy, the portions were incorrect, or the money was processed twice. How do your customers inform you about this? Via support. Establishing 24/7 support will help quickly resolve customer problems, improving your customer relationship.
Who Can Be Your Potential Partners for Delivery in Dubai?
Your potential partners for delivery can be anybody. Following is a list of businesses you can partner with as a delivery service company:
- Restaurants, cafes, and parlours
- Online stores
- Home businesses
- Flower shops
- Corporations
What is the Step-by-Step Process to Get a Delivery License in Dubai?
The process to get a delivery license in Dubai is simple. Following is a brief overview of the same:
Documents
You must submit a couple of documents to get a delivery services license Dubai. Following are some documents you must keep handy:
- Preliminary approval of the licensing authorities (Dubai Economy – Free Zones)
- Copies of the partners’ passports
- Emirates ID of citizen partners
- Valid visit or residence visa for partners
- NOC from the sponsor in case the partner is a non-GCC citizen
Note.: Once the above documents are cleared, RTA will release a NOC and you can proceed to DED for completion of the license. Experts at Shuraa can help you with a detailed list of documents. They will also ensure that your documentation is correct to avoid any mishaps or delays in the process.
License costs
The delivery service license cost in Dubai is a one-time investment with lucrative returns. The activity requires preliminary approvals. Also, you will have to get a permit from the RTA, which will cost you approximately AED 1000 and take 3-5 days.
The final cost of the license will depend on several factors, subjected to different parts. Thus, revealing the exact cost is impossible. A delivery service license cost in Dubai can be anywhere from AED 5,000 to AED 10,000, exclusive of sponsorships and other fees.
How to start delivery business in Dubai
1. Decide the Legal Structure and Location
The delivery service license in Dubai can be issued under a professional or an LLC structure as per your requirements. You must weigh the advantages and disadvantages of both before proceeding with one. Besides this, you must also choose where you want to establish your service – Mainland or Free Zones. You must compare the two objectively and then make a decision.
2. Choose a Name
Your service must also have a legal name. The authorities have laid down strict rules for naming a company. Shuraa experts can assist you in the naming process, ensuring the name you choose abides with the law.
3. Apply for a License
Delivery service license Dubai falls under a professional license. Thus, you must apply for the same with relevant paperwork.
Note.: You may require some initial approvals from the authority. Shuraa experts can explain them to you in detail as well as help to obtain them.
4. Find Potential Partners
For your business to be up and running, you will have to find potential partners. You can search for potential partners in advance or after you receive your license. The choice is yours.
5. Hire Staff
Your staff or your delivery fleet will play a huge role in your success and growth. Therefore, you must ensure that your delivery fleet is well-trained, well-spoken, and skilled at what they do.
6. Open Bank Accounts and Set Up Payment Gateways
To receive payments for your delivery services, you will have to integrate payment gateways to your app and open bank accounts. For this, you will need to open a corporate bank account.
Shuraa experts can ease the process of opening a corporate bank. They will also take care of the documentation and other details for you.
Note.: You will also have to apply for visas for yourself and your family. Furthermore, as an employer, you may need to sponsor visas for employees if you are hiring them from outside the country.
Start Your Delivery Business with Shuraa
Although obtaining a delivery service license Dubai is fairly simple, assistance for experts will not harm. Shuraa experts know everything there is to know about setting up a business in Dubai and obtaining the relevant license. They will take care of all the prerequisites, approvals and documentation for you. All you need to do is get in touch with them.
