$3 billion market! Middle Eastern e-commerce Noon enters food delivery industry

Alabbar had previously pledged in a webinar to provide a fair operating structure for the food delivery industry in the Middle East. The already tight financial situation of food and beverage operators has been exacerbated by the high commissions charged by other food delivery companies to restaurants. It is reported that some food delivery companies in the Middle East charge restaurants high service commissions of about 30%-35%.

Alabbar plans to use Noon's existing truck fleet to provide food delivery services . In terms of commission, Noon said it will only charge restaurants 17% commission on each order , including 15% of the total order amount (including delivery fees) and 2% of the payment. Noon said they will maintain this level of commission in the next two years.

In addition, Noon will offer restaurants another option: if the restaurant is willing to reduce menu prices by 20% in the first six months, Noon will only charge a 12% commission.

It is reported that Noon will start testing immediately and fully launch its food delivery service in the UAE and Saudi Arabia in March this year.

Why is Noon so eager to take action? Before Alabbar announced the news, another food delivery service, Kitch, had already been launched in the UAE and Saudi Arabia.

Kitch , a food delivery brand co-founded by Dubai businessman Walid Hajj and Saudi entrepreneur Fahad Alhokair , has officially launched after raising $15 million in private funding.

The day after Kitch went online, Al-Alabbar immediately announced that Noon would also enter the food delivery industry in the Middle East, and challenged other food delivery companies in the Middle East, asking them to reduce their commissions to 15% to have a "fair competition" .

Just when everyone thought the fun was over, things reached a climax again. Careem, a subsidiary of Uber , announced on the 3rd that in response to the proposal of its competitors, Careem will launch a new 0 commission cooperation model , which will cooperate with more than 10,000 restaurants.

Careem said it will no longer charge restaurants commissions on orders, but will instead charge them a monthly fee, but Careem has not yet disclosed how much the monthly fee is or how it is calculated.

As a result, Noon is being attacked from both sides . Although it has huge capital, it is still difficult to compete with Careem, which has been engaged in food delivery in the Middle East for nearly three years.

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