Zapp, a British rapid-delivery startup, is preparing to launch its services in Dubai later this year, entering a highly competitive market in the Middle East. A spokesperson for Zapp stated, “We are always looking for opportunities to grow our business and are considering launching in the region as early as this year,” but the company did not provide additional details.

Founded during the pandemic, Zapp aims to deliver groceries and other items in under 15 minutes. However, after a surge in investment, the valuation of many similar startups dropped as consumers returned to offices and inflation led to reduced spending on delivery services. Unlike many competitors, Zapp has focused on a broader range of convenience goods rather than solely groceries. Following departures from two European markets, Zapp is currently seeing growth in the UK.

In the UK, Zapp achieved an annualized revenue rate of approximately $100 million in 2024, driven by partnerships with premium brands like LVMH and Fortnum & Mason Plc. Internal documents indicate that the startup maintains operating margins above 15%, with an average delivery order exceeding $50. Zapp has also collaborated with other delivery firms, including Deliveroo Plc and Uber Eats, to optimize order sharing.

As Zapp prepares for its Middle East entry, it faces growing competition from existing delivery apps in the region. Keeta, a service from China’s Meituan, has recently expanded into Saudi Arabia with aggressive pricing strategies. Last year, Delivery Hero’s Talabat launched in Dubai, marking the largest initial public offering in the Gulf.

According to research firm Statista, revenue from online deliveries in the Gulf Cooperation Council, which includes Saudi Arabia and the United Arab Emirates, is projected to reach $18.9 billion by 2025, with an annual growth rate of 6.1% over the next four years. Bloomberg Intelligence analyst Tatiana Lisitsina pointed out that the Gulf region’s food delivery market is still largely under-penetrated compared to Western nations, presenting a significant opportunity for growth.