Saudi Arabia Hyperlocal Delivery Market Set for Rapid Growth; Food Delivery Dominates with 75% Market Share – Makreo Research

Saudi Arabia’s hyperlocal delivery market is entering a high-growth phase, driven by evolving consumer preferences for convenience, faster fulfillment, and digitally enabled retail experiences. According to a recent study by Makreo Research, the Kingdom’s hyperlocal delivery sector recorded a robust CAGR of 22.77% between 2021 and 2025, underpinned by rising online order volumes and increasing investments from both regional and international market participants.

Food delivery continues to anchor the market, accounting for over 75% of total hyperlocal delivery revenues in 2025. Seasonal consumption patterns further amplify demand, particularly during Ramadan, when night-time delivery orders rise by nearly 50%, supported by extended operating hours and accelerated fulfillment models.

New Entrants and Investments Driving KSA Hyperlocal Competition

The Saudi hyperlocal ecosystem is witnessing heightened competitive activity as platforms expand beyond food delivery into quick-commerce and daily essentials:

• In 2025, Rabbit, a prominent quick-commerce operator, announced its entry into the Saudi Arabian market, reinforcing the sector’s long-term commercial attractiveness.
• Homegrown platform Doos, launched in 2023, secured a strategic investment from Jahez to expand its cloud-store footprint across Riyadh and Jeddah, while diversifying into groceries, fresh produce, essentials, and lifestyle categories.

These developments highlight the growing importance of quick commerce as a strategic growth lever within Saudi Arabia’s broader hyperlocal delivery ecosystem.

E-Commerce Acceleration Strengthens the Quick-Commerce Value Proposition

E-commerce has emerged as the second-largest venture capital-funded sector in Saudi Arabia, aligning closely with the Kingdom’s digital transformation agenda. According to government sources, Saudi e-commerce revenues reached approximately SAR 211 billion in 2024, reflecting strong nationwide adoption of online retail channels.

Policy-led initiatives such as the E-Commerce Incentive Program and the Financial Sector Development Program, supported by Saudi Central Bank, are further enabling merchant digitization, enhancing payment security, and strengthening consumer trust in online transactions.

As Saudi retail scales, Makreo Research estimates that the hyperlocal retail market alone is projected to reach USD 13.5 billion (SAR 50 billion) by 2030, accounting for nearly 2% of the Kingdom’s non-oil GDP.

Retail Expansion and Logistics Demand Drive Hyperlocal Scale

Saudi Arabia’s retail and wholesale sectors are expected to undergo significant expansion through 2030, positioning hyperlocal retail as a critical economic contributor. The growth trajectory is closely tied to logistics demand:

Approximately 40% of Saudi Arabia’s total logistics requirements originate from wholesale and retail trade, emphasizing the role of efficient, localized distribution in sustaining hyperlocal operations.

As retail volumes grow, expectations for faster, time-sensitive deliveries are intensifying, creating opportunities for last-mile providers to innovate across urban centers and emerging consumption hubs.

Saudi Arabia Hyperlocal Rural Expansion

A notable trend shaping the market in 2025 is the expansion of hyperlocal delivery services beyond major cities:

• Rural delivery coverage expanded by 21%, supported by advancements in last-mile technology, route optimization, and network density.

This expansion enhances access to on-demand services in semi-urban and underserved regions, reinforcing national digital inclusion goals and unlocking new demand corridors for hyperlocal platforms.

Tech-Led Unicorn Emergence and IPO Momentum Signal Market Maturity

Saudi Arabia’s hyperlocal delivery sector is increasingly producing globally competitive technology firms:

• Ninja achieved unicorn status in July 2025 following a USD 250 million funding round led by Riyad Capital, valuing the company at approximately USD 1.5 billion.
• Building on this momentum, Ninja is reportedly in discussions with investment banks regarding a potential IPO as early as 2026, with timelines potentially extending into 2027, subject to market conditions and advisory guidance.

These milestones underscore the sector’s transition from early-stage growth to scalable, investment-grade enterprises.

The Next Phase of Hyperlocal Growth in Saudi Arabia

Saudi Arabia’s hyperlocal delivery market is undergoing a fundamental transformation shaped by digital adoption, evolving consumption behavior, and omni-channel retail integration. Key structural indicators include:

• Food delivery maintaining a 75% share of the hyperlocal market in 2025
• 50% increase in night-time orders during Ramadan
• Retail and wholesale trade contributing ~40% of national logistics demand
• 21% expansion in rural delivery coverage during 2025

Strategic Outlook and Market Opportunities Through 2030

As the market diversifies beyond food delivery into quick-commerce essentials, lifestyle products, and express retail fulfillment, multiple growth catalysts are emerging:

• Expansion of cloud-store networks across metro and semi-urban locations
• Rising investment activity accelerating platform scaling and unicorn creation
• Government-backed digital commerce programs strengthening competitiveness
• Strong venture capital momentum driving innovation in last-mile efficiency

Makreo Research’s latest analysis indicates that the Saudi Arabia Hyperlocal Delivery Market is entering a multi-dimensional growth phase, supported by comprehensive market sizing, segmentation insights, competitive benchmarking, and forecasts through 2030, as digital commerce, consumer convenience, and smart logistics converge to reshape delivery ecosystems across urban and emerging regions.

Market Segmentation of Saudi Arabia Hyperlocal Delivery Market:

By Services

• Online Food Delivery
• Online Grocery Delivery
• Quick Commerce (Q-Commerce)
• Pharmacy & Health Product Delivery
• Hyperlocal Logistics / On-Demand Courier Delivery

By Nature of Service

• On-demand Delivery
• Scheduled delivery
• Subscription-based Delivery

By Regions

• Riyadh
• Makkah
• Eastern Province
• Madinah
• Asir
• Qassim
• Tabuk
• Hail
• Jazan
• Other regions

Competitive Landscape

• Competition
• Mergers, Acquisitions, and Investments
• Funding Timeline
• Company Profiles

Companies Covered:

Hyperlocal Delivery Companies

• Jahez International Company for Information System Technology
• HungerStation Company Ltd.
• Keeta Technologies Arabia Limited (Keeta)

Logistics and Fulfilment Companies

• Aramex Saudi Limited Company
• DHL Express Saudi Arabia
• Saudi Post Corporation (SPC)
• Almajdouie Logistics Company L.L.C.

The study covers a total of 6 hyperlocal delivery platforms and 13 logistics and fulfilment companies. To know more: Saudi Arabia Hyperlocal Delivery Market Competition Assessment Report 2025

For tailored insights or specific inquiries, explore our comprehensive Logistics and Warehousing and Last-Mile Delivery Reports