Market Overview

The Saudi Arabia Out-of-Home (OOH) Delivery Market is undergoing rapid transformation, fueled by technological innovation, changing consumer behavior, and a fast-evolving foodservice landscape. Out-of-home delivery refers to the process of delivering food, beverages, groceries, and other consumer goods to consumers who are not in their primary residence—typically to workplaces, hotels, parks, events, or even roadside locations.

With urbanization, rising disposable incomes, and a young, tech-savvy population, the appetite for convenience-based delivery services has surged. The post-pandemic era further accelerated the demand for contactless and mobile-first delivery options, reinforcing the need for flexible, fast, and location-agnostic service models.

Food delivery platforms, e-commerce companies, cloud kitchens, and logistics providers are all reshaping the OOH delivery experience in Saudi Arabia. The government’s Vision 2030 plan, which emphasizes digital transformation and non-oil sector growth, also supports the proliferation of tech-enabled delivery services.

Meaning

The Out-of-Home (OOH) Delivery Market refers to the delivery of products—primarily food and beverages but increasingly including groceries, personal care, and retail goods—to consumers in public or semi-public locations, such as:

• Workplaces and offices

• Hotels and accommodations

• Shopping malls

• Public parks and recreational areas

• Transportation hubs (e.g., metro stations, airports)

• Events and entertainment venues

• Roadside delivery points or mobile pick-up hubs

Unlike traditional home delivery, OOH delivery meets the rising demand for on-the-go convenience. In Saudi Arabia, this includes deliveries to customers in Riyadh’s business districts, Jeddah’s waterfront parks, and Mecca’s hospitality zones during religious tourism.

Executive Summary

The Saudi Arabia OOH Delivery Market was valued at approximately USD 2.8 billion in 2024, and is projected to grow at a CAGR of 10.6% from 2025 to 2030. Growth is driven by urban lifestyle changes, digital penetration, the expansion of quick commerce (q-commerce), and the popularity of online food ordering among millennials and Gen Z.

Food delivery remains the dominant segment, followed by grocery delivery, personal care, and retail products. Major players such as HungerStation, Jahez, Mrsool, Talabat, and The Chefz are expanding their reach beyond home deliveries to cater to consumers in offices, parks, malls, and hotels.

Government support for logistics infrastructure and digital entrepreneurship under Vision 2030, along with widespread smartphone usage and increasing demand for flexible delivery windows, will continue to propel the sector forward.

Key Market Insights

• Millennial and Gen Z consumers dominate usage, demanding instant, mobile-based ordering experiences.

• Food and beverage delivery is the largest OOH segment, followed by groceries and consumer goods.

• Events and tourism drive seasonal spikes, particularly during Ramadan, Hajj, and Eid.

• Logistics innovation (e.g., micro-fulfillment centers, drones, and dark stores) is emerging to serve OOH needs.

• Cashless payments and delivery tracking are now standard expectations.

Market Drivers

1. Urban Lifestyle and Convenience Culture: Fast-paced urban life in cities like Riyadh, Jeddah, and Dammam has led to rising demand for convenient food and retail deliveries to offices, campuses, and public places.

2. Growth in Food Aggregator Platforms: Platforms like Jahez, Mrsool, and HungerStation offer app-based, location-agnostic delivery services.

3. High Smartphone Penetration: Over 95% of the population owns a smartphone, enabling seamless ordering and GPS-based delivery coordination.

4. Vision 2030 Digital Economy Push: Government policies are encouraging innovation and private sector participation in logistics and delivery tech.

5. Increasing Tourism and Hospitality: OOH delivery services are integral in tourist-heavy areas such as Mecca, Medina, and the Red Sea coast.

Market Restraints

1. Logistical Challenges: Delivering to public spaces or densely crowded areas can pose challenges in navigation and order accuracy.

2. Limited Infrastructure in Rural Areas: OOH delivery is primarily an urban phenomenon; expansion into Tier 2 or rural areas remains limited.

3. Regulatory Compliance: Adhering to municipal rules on delivery riders, public hygiene, and location access can be complex.

4. High Operational Costs: Maintaining speed, accuracy, and quality of service while expanding OOH services can be resource-intensive.

5. Privacy and Security Concerns: Delivering to open or semi-open locations poses risks in identity verification and order collection.

Market Opportunities

1. Integration with Smart City Projects: Smart lockers, QR-enabled pick-up points, and autonomous delivery options can thrive in new developments.

2. Partnerships with Corporates and Offices: Offering tailored delivery services to business parks and co-working spaces presents untapped potential.

3. Expansion of Cloud Kitchens: These support rapid and cost-effective fulfillment of OOH food orders from strategic urban hubs.

4. Q-Commerce Growth: 10–30 minute delivery promises are being piloted successfully in key cities, perfect for OOH demand.

5. Subscription and Loyalty Programs: Brands offering consistent workplace or park delivery can leverage loyalty-based models for recurring revenue.

Market Dynamics

Supply Side:

• Dominated by food aggregators, last-mile delivery startups, and cloud kitchens.

• Micro-fulfillment hubs and delivery-only kitchens are being positioned close to OOH hotspots.

• Tech-driven operations, including real-time rider tracking, AI-driven route optimization, and customer experience analytics, are enhancing efficiency.

Demand Side:

• Primarily young consumers aged 18–40, heavily reliant on mobile apps for food, grocery, and retail purchases.

• High demand during workdays (lunch and coffee hours), weekends, and special events.

• Hospitality businesses often partner with delivery platforms for OOH service to guests.

Economic Factors:

• Rising disposable incomes and consumer spending on dining out and convenience-based services.

• Government grants and SME loans are fostering local startups in the delivery and logistics space.

• Growth of e-commerce complements the OOH ecosystem, with shared infrastructure and logistics networks.

Regional Analysis

1. Riyadh:

   • Largest market due to population density and business activity.

   • High concentration of delivery hubs and smart city projects.

2. Jeddah:

   • Strong demand from residential, tourist, and commercial areas.

   • Active implementation of waterfront and outdoor dining experiences supported by OOH delivery.

3. Mecca and Medina:

   • Unique delivery dynamics during Hajj and Umrah seasons.

   • Hotels and worship sites drive massive OOH food and water delivery operations.

4. Dammam and Eastern Province:

   • Increasing investments in logistics make it a growing OOH delivery zone.

   • Industrial areas demand workplace delivery solutions.

5. Secondary Cities (Abha, Tabuk, Al Khobar):

   • Early-stage but fast-growing markets.

   • Potential for OOH delivery tied to tourism and university campuses.

Competitive Landscape

The market is highly competitive, with both domestic and international players vying for market share. Local platforms have a stronghold due to cultural adaptation and fast delivery capabilities.

Key Players:

• Jahez: A dominant Saudi platform offering multi-category food and retail deliveries. Known for speed and wide coverage.

• Mrsool: Offers OOH and custom delivery services using a user-to-user delivery model.

• HungerStation: Operates across the Kingdom with partnerships with top restaurants and cafes.

• The Chefz: Focused on premium and gourmet food delivery to homes, events, and public locations.

• Talabat (Delivery Hero): International player active in Saudi Arabia with diverse service offerings.

These companies compete on the basis of delivery time, app usability, geographic coverage, partnerships, and customer loyalty programs.

Segmentation

By Service Type:

• Food and Beverage Delivery

• Grocery and Essentials Delivery

• Retail Goods and Personal Care Delivery

• Courier and On-Demand Delivery Services

By Delivery Location:

• Workplaces and Offices

• Hotels and Hospitality Establishments

• Public Parks and Recreation Zones

• Malls and Shopping Centers

• Events and Temporary Installations

By Mode of Order:

• App-Based Ordering

• Web Portals

• Telephone Orders

• In-App QR Code Scanning at OOH Locations

By Delivery Model:

• Aggregator Platforms

• Direct-to-Consumer (D2C) via Brand Apps

• Subscription-Based Models

• Concierge and Custom Pickup Services

Category-wise Insights

• Food Delivery: Continues to dominate with high repeat usage and order frequency.

• Grocery Delivery: Gaining ground with integration of hyperlocal q-commerce platforms.

• Retail and Lifestyle Goods: Often integrated with mall and store experiences.

• B2B Deliveries: Emerging trend for office catering and team-based meal plans.

Key Benefits for Industry Participants and Stakeholders

1. Enhanced Revenue Channels: Restaurants and retailers benefit from tapping into non-home orders.

2. Greater Customer Reach: Delivery services can engage users during work, travel, or leisure.

3. Brand Differentiation: Offering tailored OOH services builds loyalty and adds value.

4. Data-Driven Decisions: Location-specific insights help businesses optimize menus, inventory, and promotions.

5. Support for Smart City Initiatives: Collaboration with municipalities on OOH infrastructure opens long-term opportunities.

SWOT Analysis

Strengths:

• High mobile and digital engagement

• Strong local platforms with market familiarity

• Government backing for digital transformation

Weaknesses:

• Operational complexity in crowded or unsecured OOH locations

• Limited OOH infrastructure (e.g., lockers, pick-up points)

• Dependency on weather and outdoor conditions

Opportunities:

• Integration with Saudi giga-projects (e.g., NEOM, The Line)

• Drone and autonomous delivery pilot programs

• Expansion of multilingual services for tourists and expatriates

Threats:

• Rising competition and potential price wars

• Regulatory changes related to labor laws and gig economy rules

• Cybersecurity risks with mobile-based platforms

Market Key Trends

1. Rise of Delivery Robots and Drones: Pilot projects are exploring last-mile OOH delivery automation.

2. Gamified Loyalty and Rewards Programs: Platforms encouraging repeat orders via digital loyalty initiatives.

3. Dark Stores and Delivery-Only Hubs: Supporting fast delivery to outdoor and on-the-go consumers.

4. Ecosystem Integration: OOH delivery becoming part of broader e-commerce and entertainment ecosystems.

5. Focus on Sustainability: Eco-packaging and green delivery vehicles being tested for OOH use.

Key Industry Developments

1. Jahez’s IPO and Expansion Plans: Fueling tech investment and service diversification.

2. Smart Locker Pilots in Riyadh and Jeddah: Enabling flexible OOH pick-up options.

3. Restaurant-Platform Partnerships: Exclusive delivery deals to drive app-specific traffic.

4. Tourism and Event Collaborations: Delivery services integrated with cultural and sporting events.

5. Infrastructure Upgrades: Municipal investments in roads, Wi-Fi zones, and delivery parking areas.

Analyst Suggestions

1. Invest in Hyperlocal Delivery Networks: Micro-warehouses near OOH hotspots can reduce delivery time.

2. Build Brand-Platform Partnerships: Restaurants and retailers should co-develop OOH-focused campaigns.

3. Enhance App Experience: Seamless geolocation features and multi-language support are crucial.

4. Explore New Delivery Models: Subscription and time-slot deliveries for workplaces can create predictable revenue.

5. Monitor Regulatory Evolution: Stay ahead of changes related to delivery rider licensing and taxation.

Future Outlook

The Saudi Arabia OOH Delivery Market is expected to exceed USD 5 billion by 2030, driven by consumer convenience preferences, evolving urban lifestyles, and the digitization of food and retail services. Integration with smart city ecosystems, event-based deliveries, and tourism-related demand will create new frontiers.

With government support for innovation, rapid infrastructure development, and a youthful population that embraces tech, Saudi Arabia is set to become a leader in next-generation OOH delivery services in the MENA region.

Conclusion

The Out-of-Home (OOH) Delivery Market in Saudi Arabia represents a fast-growing, innovation-driven sector that caters to modern consumer expectations of convenience, speed, and flexibility. Fueled by demographic trends, digital infrastructure, and a progressive regulatory environment, the market is well-positioned for sustained growth.

Industry stakeholders who invest in localization, delivery technology, and smart partnerships will be best positioned to capitalize on this dynamic market. As lifestyles and urban spaces continue to evolve, OOH delivery will play an increasingly central role in the Kingdom’s retail, foodservice, and consumer experience landscape.