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 service license in Dubai 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.
Requirements to Start a Delivery Service Business in Dubai
To successfully establish and operate a delivery service business, you need to meet the following requirements:
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 Delivery Partners in Dubai?
As a delivery service company in Dubai, you can collaborate with a wide range of businesses. Here are some potential partners to consider:
- Restaurants, Cafes, and Parlours
- Online Stores and E-commerce Platforms
- Home-Based Businesses
- Flower Shops and Gift Stores
- Corporations and Offices
Partnering with these businesses can help you expand your reach and build a successful delivery network in Dubai.
Required Documents for the Delivery Business in the UAE
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.
How much is a delivery service license in Dubai?
The cost of a delivery service license in Dubai typically ranges from AED 5,000* to AED 10,000*. However, the final cost depends on several factors and does not include additional fees such as sponsorships or other related expenses.
Additional Requirements for a Delivery Service License
Obtaining a delivery service license in Dubai is a one-time investment with the potential for lucrative returns. The process requires preliminary approvals and a permit from the RTA (Roads and Transport Authority), which costs approximately AED 1,000 and takes 3-5 days to process.
To get an exact costing tailored to your specific needs, you can contact our expert business setup consultants for personalized assistance.
How to Start a Delivery Business in Dubai
Starting a delivery business in Dubai involves a structured process, from choosing the right legal structure to obtaining licenses, finding partners, and setting up operations. Here’s a step-by-step guide to help you navigate the setup process seamlessly.
Step 1: Decide the Legal Structure and Location
To start a delivery business in Dubai, you must first choose the legal structure—either a Professional License or an LLC—based on your business needs. Evaluate the pros and cons of each structure carefully. Additionally, decide whether to set up your business in the Mainland or a Free Zone, as each option offers unique benefits. Make an informed decision by comparing factors like ownership, operational flexibility, and cost.
Step 2: Choose a Business Name
Your delivery service must have a legal name that complies with Dubai’s naming regulations. The authorities have strict guidelines, so it’s essential to choose a name that aligns with these rules. Shuraa Business Setup Experts can guide you through the naming process, ensuring compliance and saving you time.
Step 3: Apply for a Delivery Service License
In Dubai, a delivery service falls under a Professional License. You’ll need to submit the required documents and complete the application process.
Note: Some initial approvals from relevant authorities may be required. Shuraa’s experts can provide detailed guidance and assist you in obtaining these approvals seamlessly.
Step 4: Find Potential Partners
To ensure your delivery business thrives, collaborate with potential partners such as restaurants, e-commerce platforms, and retail stores. You can start building these partnerships before or after obtaining your license, depending on your business strategy.
Step 5: Hire and Train Your Delivery Fleet
Your delivery staff plays a critical role in your business’s success. Ensure your team is well-trained, professional, and skilled in customer service. A reliable and efficient delivery fleet will enhance your reputation and help you grow.
Step 6: Open a Corporate Bank Account and Set Up Payment Gateways
To manage payments effectively, integrate secure payment gateways into your delivery app and open a corporate bank account. Shuraa’s experts can simplify the bank account opening process, handling documentation and other formalities on your behalf.
Note: As a business owner, you’ll also need to apply for visas for yourself, your family, and any employees you sponsor from outside the UAE.
Why Choose Shuraa for Your Delivery Business Setup?
Starting a delivery business in Dubai involves multiple steps, from licensing to partnerships and operational setup. Shuraa Business Setup offers end-to-end assistance, ensuring a smooth and hassle-free process. From legal structuring to visa processing, our experts are here to support you at every stage.
*Note: The information in this post is for general guidance only and may change due to updates in government policies or regulations.
