The delivery service business model has entirely changed in the past years after the pandemic. We rely more on online shopping and delivery. The luxury of everything delivered to your doorstep from daily essentials to luxuries appeals to the possible as it saves time. The food industry business has touched the sky as delivery in 10 minutes has ignited the users to order more.
The user retainment of online food delivery services in the UAE is continuously rising and chances are it may jump high in 2025. The online food delivery segment may reach 5.5 million users by 2026. The delivery business service will encounter a huge boost with the increasing demand.
The Department of Economic Development has renamed the name delivery services to Home Delivery Services as it requires a professional license. If you wish to obtain a delivery service license in Dubai we are here to help you with the process and license cost in Dubai.
Requirements for starting Delivery Services
There are a few benefits of delivery services such as
01. Delivery Platforms
Delivery services bridge the gap between the provider and the customer. You should be at the platform where customers can easily meet the provider.
02. Trained Drivers
A trained fleet of drivers is required to run the delivery service company and also ensure the drivers can do it safely. The fully trained drivers ensure the intact and safe delivery of packages.
03. Live order Tracking System
The live order tracking system enables the user to track their orders at any point from start to end and they are also informed about the orders.
04. Fleet Equipped with Smartphones
The drivers are well-versed with the way and directions but they cannot remember every small detail to deliver multiple packages or orders. Provide the smartphones to the entire fleet and delivery will be handled in no time without any hassle.
The use of smartphones makes things easy for them as they can use the maps to reach the right location and they can easily track different orders on the app which directly enhances the efficiency of the delivery partners. The smartphones allow them to directly connect with their respective delivery agents and vice-versa.
05. Customer Support
Customer support should be there to tackle the problems with the order. If the package was open when delivered or the restaurant was delivering unhealthy or the quantity was not corrected or money was processed but the order was not placed. There can be millions of issues that people can encounter when ordering when online and reliable customer service is a must tackle these. The 24/7 customer support can easily and quickly resolve customer problems and also improves customer relationships.
Document required for Delivery Service License
- Approval of the Licensing authorities.
- Passport copies of the partners
- Residence visa for the partners
- Emirates ID of citizen partners
- NOC in case the partner is a non-GCC Citizen.
After the clearance of the above-mentioned documents, RTA releases a NOC that proceeds to DED for completion of the license.
Cost of the Delivery Service License
The delivery service license cost is expensive but it is a one-time investment that ensures high and lucrative returns. This requires approvals to function and permit form RTA approximately costs around AED 1000 and also takes 3-5 business days.
The final cost of the license entirely depends on several factors in the different parts. The delivery service license costs around AED 5000 to AED 10000 which is exclusive of sponsorships and other fees.
Process of the Delivery Service License
Decide the Legal Structure and Location
The delivery service license in Dubai can be issued under the professional or an LLC structure as per the requirements. You are required to choose where you want to establish the services Mainland or Freezone. Before you decide it is important to compare both of them and make a decision.
Choose the Business Name
The business should have a legal name to commence its activities. The authorities have laid some strict rules for naming the company. The name should adhere to the law and ensure the process should be flexible.
Apply for a License
The delivery service license in Dubai comes under the professional license which requires the user to fill out the relevant paperwork. The initial approvals are needed from the authority for the business to function. FlyingColour Business Setup Services Experts can help you with the process of applying for a license.
For the delivery service business, you are required to have a large delivery fleet as it directly contributes to the success and growth of the business. Ensure the fleet is well-trained and skilled at what they do and contributes to the growth of the business.
Start opening Bank Accounts and set Payment Gateways
To receive payment for the delivery services you should have integrated payment gateway accounts. The opening up of a corporate bank account is mandatory. If you are hiring out of the country you have to sponsor those employees and for their visas. The experts at FlyingColour Business Setup in Dubai Services can help with the documentation and smoothen the process of retaining visas for employees.
Look for Potential Partners
For the functioning of the business to be smooth, you are required to find a partner which you can do in advance or after receiving the license. It is advisable to look for possible prospects in advance as it can provide time to do a thorough screening before choosing them for the business.
The delivery service business is quite profitable and also allows obtaining a license is quite easy and simple. We at FlyingColour Business Setup Services help you in setting up the business. Our experts are well-versed in the process of setting up a business in Dubai. We take care of all the documentation and also help you with all the approvals and permits to get you started in no time.