What Is The Cost Of The Delivery Service Business In Dubai?

Over the past few years, the landscape of the delivery service business in Dubai has changed. Ever since the global pandemic, people now prefer to order via various communication means and get their products delivered to their doorstep. The preference for this luxury over other traditional shopping methods has elevated the demand for delivery service providers in the UAE. In other words, one can easily think of starting a delivery service business in Dubai and take advantage of this lucrative opportunity.

This blog will explain the importance of delivery business in Dubai and the procedure to establish this business without any hassles.

Essential components of a delivery service business in Dubai

A dedicated delivery service business must serve its customers with the following necessities:

• Cost-efficient delivery platform

An efficient delivery service builds a constructive relationship between the customer and the supplier. Therefore, you must create a platform where customers can interact with the supplier and specify their requirements.

• Efficient and trained drivers

A delivery service can be efficient only if it is provided at the right time and in the right condition. Hence, to fulfill that purpose, you need some skilled and trained drivers who can accomplish this task proficiently. In fact, they are the cornerstone of your business that can either make or break your delivery service business.

• Live order tracking

Customers like to be well-informed about their orders like where has it reached, when it is expected to arrive, etc. Hence, a proper order tracking tool will regularly update them about their orders right from the order placement to the order delivery. This will, thus, help them track their package and make themselves available to receive the package as well.

• Smartphone equipped fleet

Most of the time the drivers or delivery person may be well-trained and skilled. However, they may not be aware of the directions and routes, especially in a new city. Further, it may hamper the delivery time as well as the package. However, a smartphone-equipped fleet can make their jobs easy to perform, thus improving the accuracy and efficiency of their service.

• 24*7 customer support

While receiving a package, a customer faces several issues. For example, the package was open or damaged while receiving, the received product was defective, the payment was processed twice, etc. Hence, to meet such problems, a delivery service business in Dubai must establish 24/7 support that will interact with the customers and resolve their issues, thus maintaining a buyer-supplier relationship.

Importance of delivery service business in Dubai

There are several valid reasons why even the biggest enterprises opt for a delivery service partner.

• Better management of the shipping process
• Timely deliveries
• Better order visibility
• Reduced courier and shipping charges
• Access to various locations in the UAE
• Faster process of order
• More payment option
• Inventory management
• Easy management of returns and exchanges
• Advanced in-built tech support

Also read the post: How to Change Local Sponsor in Dubai?

Potential partners for a delivery service business in Dubai

• Online stores

With the emergence of the Covid-19 pandemic, the demand for online stores has surprisingly increased all over the world. Similarly, online stores in Dubai and other emirates of the UAE have also increased rapidly. However, these stores require delivery service providers to deliver their products to their customers on time, that too in good packaging.

• Restaurants & cafes

Just like online stores, restaurants, cafes and other eateries are one of the major segments people rely on. With online food delivery apps, ordering food has become easy for people. They can simply select their desired cuisines from their favorite restaurants and place their orders through the app. Later, these restaurants and cafes deliver the order to the customer via delivery service providers.

• Boutiques

We have come across many clothing stores promoting their products via social media such as Facebook, Instagram, WhatsApp, etc. Most of these are small boutiques started on a lower scale on a part-time basis by housewives as well as working women. Hence, hiring delivery staff may not be a profitable business for them. So, that’s why they opt for outsourcing their delivery activities with the delivery service provider companies.

• Flower shop

Most of the stores and restaurants in Dubai are depending on delivery services. Similarly, flower shops have also switched to online provisions by outsourcing their delivery activities to delivery service providers.

• Courier rental services

Many corporations in the UAE opt for courier rental services in order to deliver certain documents. However, courier rental staff not only performs delivery but also carries out other additional tasks such as waiting in the queue at the tax office, handing over or picking up documents, etc.

• Home businesses

UAE is ever encouraging new business ideas, be it a small-scale start-up or large enterprise. Similarly, it is also approving of home businesses usually started by housewives in the UAE. These businesses, thus, require delivery service providers to distribute their commodities and services to various places.

Types of delivery services in Dubai, UAE

• Intercity delivery services – Delivering packages among different cities within the UAE.
• Door-to-door delivery services – Distributing products at the doorstep or directly to the customer in the UAE.
• Delivery from online stores – Delivering the order to the given address.
• Logistics services – Executing and facilitating the delivery operations.

Procedure for incorporating a delivery service business in Dubai

Below are the steps to start a delivery business in Dubai –

• Determine the legal structure and location

One can set up a delivery business in Dubai in any of the available structures depending on the business requirements. However, it is important to weigh the pros and cons before finalizing. Besides, you must also choose what location you wish to establish your delivery service business. Whether the mainland or one of the free zones.

• Determine a business activity

While deciding on your business activities, make sure that they align with those on the Department of Economic Development (DED) list.

• Choose a trading name

The essential thing here is that you must abide by the struct naming rules of the UAE government. For instance, you must avoid any offensive or disrespectful language,  you should avoid any initials, abbreviations as well as references to other well-known organizations, groups, communities, or societies. Most necessarily, cross-check with the authorities whether the selected name is available to register.

• Apply for the business license

You need to provide some information along with a few supportive documents such as passport copies of the owners, license application form, photographs of the shareholders, etc. while applying for a license.

• Employ staff

A well-efficient staff is one of the major factors in the growth and success of a delivery business. Therefore, you must hire well-trained employees who are skillful as well as well-spoken.

• Apply for a UAE residency visa

Just like a business license, you need to apply for a UAE residency visa in order to live legally in the country. The visa application is also incredibly quick as well as straightforward.

• Open bank accounts for payments gateways

Delivery services are mostly conducted through online mediums. Hence, the payments are carried out digitally most of the time. Therefore, the business owner must incorporate payment gateways into their apps to facilitate smooth transactions, and also open a corporate bank account to keep track of these transactions.

The business experts of Shuraa can help you find a reliable bank for your financial needs and also ease the process of opening a bank account as well.

Basic documentation for license application:-

• Initial approval from the authorities
• Passport copies of the shareholders
• Emirates ID (for local shareholders)
• UAE visa/entry permit
• NOC from the current sponsor, if any

Although incorporating a delivery service business in Dubai as well as obtaining the required license is fairly simple, assistance from experts will only simplify your job.

The professionals of Shuraa Business Setup know everything about setting up a business in Dubai or anywhere in the UAE. Moreover, they will take care of all the prerequisites, approvals, and documentation and help you obtain a business license for your company. So, all you need to do is get in touch with them.