Did you know that the United Arab Emirates courier service sector is $1.2 billion big? By 2030, it is estimated to grow to $1.91 billion. This is huge! This industry is simply growing at the rate of 8.06% in a year. How is this growth happening? What does the courier sector of the UAE have in store for the country, and how can this growing market cater to the population? We will find out in this post.
The Courier Service Sector in UAE
The courier services sector is the fastest-growing market in terms of speed. The launch of new express delivery systems and seed funding for delivery platforms are driving this fast-paced growth. When we speak of the courier services market, we don’t just stick to local courier service Dubai, we speak of the entire country.
Let’s look at some numbers:
- This is the fastest growing market by model at a rate of 10.48%. This is happening because the trader license in Dubai has been designed to support the extension and expansion of e-commerce in the UAE.
- It is also the largest market based on shipment weight, at the rate of 57.89%. This shipment is in the grocery, health, beauty, personal care, and fashion products departments.
- Lastly, it is the largest market in the end user industry, with a 42.95% share. Some of the leading parcel delivery providers dominate the delivery areas through e-commerce retailers.
A Comprehensive Overview of the Different Forms of Courier Services in UAE
Traditional Form of Courier Services
Traditional courier services are still prevailing within the country. These kinds of services would typically charge according to the weight, size, and urgency of the product deliveries.
Same-Day Delivery Courier Services
Same day delivery services is a new form of service provided in the country. These services guarantee delivery of the package on the same day, typically within a few hours. This kind of delivery service has a higher charge because of the expedited nature of the service.
Subscription-Based Courier Services
Customers would pay a recurring subscription fee in order to access courier services frequently. There is a monthly or an annual subscription on these services, which gives the delivery service regular income.
On-Demand Courier Services
On-demand delivery services allow the customer to request pick-ups and deliveries almost instantly through an application. Charges would involve a base fee and an additional fee according to the distance and urgent requirement of that product.
International Courier Services
These services facilitate the shipment of packages overseas, and the charges for this form of delivery will be the distance and borders that the parcel needs to cross.
E-commerce Fulfillment Services
Courier delivery services have now partnered with e-commerce businesses to manage their order fulfilment and shipping needs. The growth of the internet and e-commerce has also given rise to the demand for courier service partnerships.
Green Courier Services
This form of delivery service involves the company using sustainable materials to deliver the products, which benefits the environment.
Technology-Driven Courier Platforms
You can notice that companies like Porter Logistics UAE are gaining popularity from technology-driven courier services that involve live tracking, GPS systems, online payments and much more.
Conclusion
Now that you have looked at the widespread courier services within the country, let’s wait and watch how this spectrum grows in the near future. All you need to do is be ready to witness this massive upcoming change. The UAE Courier Service Sector is going to the next level as we sit and watch.
