British quick delivery startup Zapp is planning to broaden its reach by launching services in Dubai later this year. This move comes as part of a strategy to enter the increasingly competitive Middle Eastern market, which has been attracting significant investments in the logistics and rapid delivery sectors.

Market Potential in the Middle East

Zapp's entry into the Dubai market is strategically important, especially considering the growing demand for quick delivery services. This region is experiencing a substantial increase in online sales, creating favorable conditions for startups that offer innovative logistics solutions.

Advantages of Dubai

Dubai offers several competitive advantages for startups, including:

• Developed infrastructure;

• High standard of living and purchasing power;

• Government support for innovative enterprises.

Market Challenges

Despite the region's appeal, entering the Dubai market presents certain challenges. The competition in the delivery sector is fierce, with numerous players like Deliveroo and Talabat offering similar services. Therefore, Zapp will need to find ways to differentiate itself and attract customers.

The Story of Zapp

Founded during the peak of the COVID-19 pandemic, Zapp aimed to provide delivery services for groceries and other goods in under 15 minutes. At the height of demand, the startup secured significant investment, enabling it to expand rapidly and enhance its logistics network.

Impact of the Pandemic

The pandemic created a unique environment for delivery-focused startups. However, with the return of office workers and the decline in consumer spending due to economic challenges, many companies in this sector have faced decreased demand and valuation drops.

Zapp's Recovery

Currently, Zapp is informing investors about its recovery plans. Traditional approaches have not yielded the desired results, and the company is now focusing on higher-priced goods, which is expected to help increase the average order value and restore market stability.

Advantages of Focusing on Higher-Priced Goods:

• Increasing average order value;

• Higher margins;

• Attracting a more affluent customer base.

The launch of Zapp in Dubai marks a significant milestone for the company and opens new avenues for business expansion. Despite the challenges, the startup has strong potential for a successful market entry, given the growing interest in quick delivery services in the region.