UAE Traffic Congestion Drives Surge in Demand for Local Deliveries, Courier Firms Report

Courier companies in the UAE are experiencing a significant surge in parcel delivery demand, with experts attributing the rise to the country's booming e-commerce sector and increasing traffic congestion.

Jason Clare, Partnerships Director at Yalla Courier, revealed that despite minimal marketing of their local services, the company has witnessed a substantial growth in orders.

"We are expanding locally and even adding a drop-off location at a mall kiosk to keep up with the demand,"

he said.

Supporting this growth, Borhene Benmena, CEO of Shipa Delivery, highlighted that the courier, express, and parcel (CEP) market in the UAE has been expanding at a rate of 7.5% annually since 2020.

“Our company’s volumes have more than doubled since 2020, and we expect the market to grow from $1.2 billion to $1.9 billion between 2024 and 2030,”

he said.

Traffic congestion plays a crucial role in the increased demand for courier services. Clare noted that many customers opt for courier delivery even for short distances to avoid the hassle of driving.

"Sending a 5kg parcel from Abu Dhabi to Dubai costs only around Dh30, cheaper than a cup of coffee,"

he added.

E-commerce and international trade have also fueled this expansion, with Dubai's status as a retail hub driving demand for same-day deliveries. Popular delivery routes include Dubai to Abu Dhabi and Dubai to Sharjah, with apparel, shoes, and cosmetics among the most commonly shipped items.

As demand grows, both local and cross-border courier services continue to thrive, offering fast, affordable, and efficient delivery solutions.

News Source: Khaleej Times