UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion
- KR989
- Pages: 95
- May 2020
- Author(s): Shefali Jain
- Total Views:3235
- Region : Middle East
- Ken Research
- Market Research Report

Details
The report titled “UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion" provides a comprehensive analysis of Online Grocery Delivery Market in UAE. The report covers various aspects including the current online grocery delivery scenario in UAE, need & opportunities describing the target addressable market, the addressable gap in the market, and possible solutions.
It also covers current supply and demand in the region, detailed working of the marketplace, Omnichannel and pureplay operating model, trends, developments, challenges, seasonality trends, current & upcoming technologies facilitating online grocery delivery industry, revenue streams and marketing strategies driving the industry. It gives a detailed explanation of competitive scenarios including cross-comparison between major players, SWOT, and detailed company profiles of major players and concluding with future scope and analyst recommendations.
Market Overview and Demand- Supply Scenario
Gaps in offline grocery shopping such as the inconvenience of commute, long payment queues, and cost of impulse buying led to the introduction of e-grocery delivery in UAE. Population aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit growth rate close to 38% between 2016 and 2019. High internet penetration, rising working population, and an increasing number of single families have led to the growth of e-grocery services in UAE. The number of companies offering grocery delivery services in the UAE has increased over the years. Companies have expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.
Demand by Product Category (Food & Beverages, Household Supplies, Beauty and Health, Baby & Kids and Fresh Food)
Food & Beverages mapped as the most demanded product category. This was followed by household supplies, beauty & health, baby & kids, and fresh food. Carrefour, Lulu Hypermarket, Bawiq, El Grocer, Talabat specializes are major players in the food & beverage category.
Demand by Region (Dubai, Abu Dhabi & Other Emirates)
Dubai and Abu Dhabi mapped as major cities based on demand and supply of online grocery services. This is mainly due to the concentration of the population in these regions. Working professionals, who are the major end-users of online grocery delivery services, are concentrated in Dubai and Abu Dhabi.
Demand by Mode of Payment (Pre Delivery Online Payment, Card on Delivery and Cash on Delivery)
The demand is still dominated by pre-delivery online payment followed by card on delivery and cash on delivery. People who order online are usually not present to collect delivery and therefore pre-payment is preferred. In Dubai and Abu Dhabi, the majority of household chores are taken care of by house helps and they usually collect the order delivery therefore customer prefers online mode of payment.
Competitive Landscape
The industry is fragmented with the presence of more than 25 players operating across the marketplace, pureplay, and omnichannel model. Delivery Cost, Delivery Time, App Interface, Discounts & Offers, Return Policy, Ease of Payment have been major factors influencing customer behavior. The major players include Carrefour, Instashop, Lulu Hypermarket, El Grocer, Kibsons, Bulkwhiz, and Bawiq. Companies with large product assortment, wide regional presence, and express delivery are identified as clear leaders in the industry.
Operating Models
Service providers have been following marketplace, Pureplay and Omnichannel model to deliver customer orders in UAE. Instashop, Bawiq, El Grocer has been following the marketplace model in UAE. Kibsons, Bawiq, Noon, Amazon follows the pureplay model. Whereas Carrefour, Lulu Hypermarket, Aswaaq, Choithrams follows the Omnichannel model.
Impact of COVID-19
Online grocery sales in the region have surged recently, as more people are avoiding crowded places and turning to online shopping owing to the corona pandemic. The average basket size of online order has increased to 15-20 times during the corona pandemic. Average delivery time for Omnichannel companies during the pandemic increased to 8-10 days. On the other hand, pureplay and marketplace companies were offering grocery delivery within 2-4 days and one day respectively.
Future Outlook and Projection
The demand is expected to grow with a CAGR of 34% on the basis of GMV between 2019 and 2025. Companies are anticipated to focus on expanding tie ups with suppliers & grocery stores to fulfill customer orders. The demand is expected to be driven by upcoming technologies such as Drone Delivery, Warehouse Automation, Voice Ordering and others. Market consolidation is expected in future as players with heavy financial backing and better brand value will acquire small players.
Key Segments Covered:
- By Region
Dubai
Abu Dhabi
Other Emirates
- By Age Group
18-24 years
25-34 years
35-44 years
45+ years
- By Product Category
Food & Beverages
Household Supplies
Beauty and Health
Baby and Kids
Fresh Food
- By Gender
Male
Gender
- By Mode of Payment
Pre-Delivery Online Payment
Card on Delivery
Cash on Delivery
Companies Covered
Carrefour
Lulu Hypermarket
Instashop
Kibsons
El Grocer
Trolley.ae
Bawiq
Amazon
Noon
Farmbox
Bulkwhiz
Key Target Audience
Online Grocery Delivery Companies
Supermarkets & Hypermarkets
E-commerce Companies
Food Delivery Companies
Investors
Time Period Captured in the Report:-
Historical Period: 2016–2019
Forecast Period: 2020-2025
Key Topics Covered in the Report:-
Difference between Online & Offline Grocery Shopping. Why Online Grocery is the Way Forward?
Target Addressable Audience
Supply Ecosystem and Competition Parameters
Demand Scenario, Target Customer and Factor Influencing Consumer Behavior
Technologies Facilitating Online Grocery Delivery Industry
Upcoming Technologies in Online Grocery Delivery Industry
Cross Comparison of Operating Models (Marketplace, Pureplay and Omni-channel)
Revenue Streams
Marketing Strategies
Addressable Gap in the Market and Possible Solutions
Emerging Business Strategies
Best Practices in Business
Seasonality Trends
Covid-19 Impact on UAE Online Grocery Delivery Market (Impact on KPIs, Monthly Orders, Impact on Consumer Behavior, What companies did to meet Excess Demand?)
Analyst Recommendations
Table Of Content
Scope
1. Executive Summary
UAE Online Grocery Delivery Market Structure 2019
UAE Online Grocery Delivery Market Structure 2025F
2. Need and Opportunity
How is Offline Grocery Shopping Different from Online Grocery Shopping?
Why Online Grocery is the Way Forward
Target Addressable Market
Addressable Gap in the Market and Possible Solutions
3. Supply Scenario
Supply Infrastructure: Ecosystem for Grocery Retailers
Industry Business Cycle
Supply Side: Market Analysis & Growth Drivers
Supply Infrastructure: Regional Presence of Major Players
Challenges Faced by Online Grocery Delivery Companies
4. Demand Scenario
What My Customer Prefers?
Factors Influencing Customer Behavior
UAE Online Grocery Delivery Market Size on the basis of GMV, Annual Orders & Average Order Size, 2016-2019
Annual Grocery Demand By Product Type and Payment Mode
Where is the Online Grocery Delivery Market Concentrated in UAE?
Seasonality Trends
Impact of Covid-19 (Impact on Monthly Orders, Average Order Size, Delivery Time, Consumer Behavior and Steps taken by companies to meet Excess Demand)
5. Operating Models across UAE Online Grocery Market
Operating Model: Marketplace
Role & Responsibilities of Company and Partner Grocery Store
Operating Model: Pureplay
Operating Model: Onmichannel
Cross Comparison of Operating Models (Marketplace, Pureplay and Omnichannel) on the basis of Delivery Time, Inventory, Gross Margin, Product Assortment, Product Replenishment, Players, Advantages & Disadvantages
Revenue Streams of Companies Operating in Marketplace, Pureplay and Omnichannel Model
Gaps & Possible Solutions of Managing Logistics
6. Industry Analysis
Technologies Facilitating Online Grocery Delivery Industry
Upcoming Technologies in Online Grocery Delivery Industry
Features of an Grocery Delivery App
SWOT Analysis
Where does UAE Stands in Comparison to Other Mature Markets (China, UK, India & US)?
7. Competitive Landscape in UAE Online Grocery Market
Competition Scenario and Industry Unit Matrix
Business Landscape of Major Players including Year of Establishment, Business Model, Warehousing Capability, Most Demanded Product Category, Pick Up Service, Number of Partner Grocery Stores, Suppliers, Hypermarkets, Delivery Fleet, Product Listings, Delivery Charges, Delivery Time, Cancellation Rate & Employees
Performance Matrix of Service Providers
Financial Matrix of Major Players (Approximate Annual Orders, Market Share on the basis of Number of Orders, Market Share on the basis of GMV)
Strengths & Weakness of Service Providers
Investment Activities (Investors, Total Funding Amount, Funding Status and Latest Funding)
Company Profiles (Overview, Product Category, Business Model, Business Strategies, USP, Future Plans, Recent Developments)
- Carrefour
- Lulu Hypermarket
- Instashop
- Noon.com
- Kibsons
- El Grocer
- Bulkwhiz
- Amazon
- Bawiq
- Talabat
- Farmbox
8. Future Landscape of UAE Online Grocery Delivery Market
UAE Online Grocery Delivery Market Future Outlook to 2025 on the basis of GMV, Annual Orders and Average Order Size (2019-2025)
Operators to Expand in Dubai & Abu Dhabi and Facilitate Online Payment
What are the Upcoming Product Categories?
9. Case Study & Analyst Recommendations
How Can Companies Reduce Delivery Time and Delivery Cost?
Key Adoption Points(Personalized Consumer Experience, Introduce Private Labels to Increase Margins, Wallet Based Automated System, Achieving Operational Efficiency, Adopting Artificial Intelligence , Partner with Food Delivery Companies
How can Companies Promote themselves?
Why and How Subscription & Micro-Delivery Model can be Implemented?
10. Industry Speak
Interview with Amira Rashad, Co-Founder & CEO at Bulkwhiz
11. Appendix
Research Methodology
Disclaimer
Contact Us
Licence Rights
License Type | Excel Only | Single User | Single User + Excel | Hard Copy | Corporate User License |
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User Sharing | Restricted to one registered login | Restricted to one registered login | Restricted to one registered login | Access to Printed Report; No Soft Copy | Multiple Users within the Company/ Enterprise |
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Citation | Yes (Not Publically; but to Private Parties within the company/ affiliate) | Yes (Not Publically; but to Private Parties within the company/ affiliate) | Yes (Not Publically; but to Private Parties within the company/ affiliate) | Yes (Not Publically; but to Private Parties within the company/ affiliate) | Yes (Not Publically; but to Private Parties within the company/ affiliate) |
Customization | ![]() |
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20% |
Analyst Time (Post Purchase Queries on Call/ Email) | ![]() |
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Disclaimer : In no circumstance, the complete / part of the publication may be resold for monetary terms by the client or any other party related to the client or can be made available on third party website or on Google for general public view. |

Section Purchase
Covid 19 Inquiry
In Depth Analysis of COVID 19 Impact on UAE Online Grocery Delivery Market
Respecting industry experts that are helping companies to survive and to sustain in this economic pandemic. We are working day and night to aid companies in taking rapid-decisions by finding
- COVID-19 Impact on Online Grocery Delivery, Increase in Number of Orders, Average Order Size, Delay in Delivery, Additional Expenditure incurred by companies on Logistics
- Strategies adopted by Service Providers during COVID 19
- Future Impact of COVID-19 on Online Grocery Industry
INQUIRE FOR COVID-19 IMPACT ANALYSIS
Products and Companies
Products
Key Segments Covered:
- By Region
Dubai
Abu Dhabi
Other Emirates
- By Age Group
18-24 years
25-34 years
35-44 years
45+ years
- By Product Category
Food & Beverages
Household Supplies
Beauty and Health
Baby and Kids
Fresh Food
- By Gender
Male
Gender
- By Mode of Payment
Pre-Delivery Online Payment
Card on Delivery
Cash on Delivery
Key Target Audience
Online Grocery Delivery Companies
Supermarkets & Hypermarkets
E-commerce Companies
Food Delivery Companies
Investors
Time Period Captured in the Report:-
Historical Period: 2016–2019
Forecast Period: 2020-2025
Companies
Companies Covered
Carrefour
Lulu Hypermarket
Instashop
Kibsons
El Grocer
Trolley.ae
Bawiq
Amazon
Noon
Farmbox
Bulkwhiz
Company Profile
Company Profile Title
The report titled “UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion" provides a comprehensive analysis of Online Grocery Delivery Market in UAE. The report covers various aspects including the current online grocery delivery scenario in UAE, need & opportunities describing the target addressable market, the addressable gap in the market, and possible solutions.
It also covers current supply and demand in the region, detailed working of the marketplace, Omnichannel and pureplay operating model, trends, developments, challenges, seasonality trends, current & upcoming technologies facilitating online grocery delivery industry, revenue streams and marketing strategies driving the industry. It gives a detailed explanation of competitive scenarios including cross-comparison between major players, SWOT, and detailed company profiles of major players and concluding with future scope and analyst recommendations.
Market Overview and Demand- Supply Scenario
Gaps in offline grocery shopping such as the inconvenience of commute, long payment queues, and cost of impulse buying led to the introduction of e-grocery delivery in UAE. Population aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit growth rate close to 38% between 2016 and 2019. High internet penetration, rising working population, and an increasing number of single families have led to the growth of e-grocery services in UAE. The number of companies offering grocery delivery services in the UAE has increased over the years. Companies have expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.
Demand by Product Category (Food & Beverages, Household Supplies, Beauty and Health, Baby & Kids and Fresh Food)
Food & Beverages mapped as the most demanded product category. This was followed by household supplies, beauty & health, baby & kids, and fresh food. Carrefour, Lulu Hypermarket, Bawiq, El Grocer, Talabat specializes are major players in the food & beverage category.
Demand by Region (Dubai, Abu Dhabi & Other Emirates)
Dubai and Abu Dhabi mapped as major cities based on demand and supply of online grocery services. This is mainly due to the concentration of the population in these regions. Working professionals, who are the major end-users of online grocery delivery services, are concentrated in Dubai and Abu Dhabi.
Demand by Mode of Payment (Pre Delivery Online Payment, Card on Delivery and Cash on Delivery)
The demand is still dominated by pre-delivery online payment followed by card on delivery and cash on delivery. People who order online are usually not present to collect delivery and therefore pre-payment is preferred. In Dubai and Abu Dhabi, the majority of household chores are taken care of by house helps and they usually collect the order delivery therefore customer prefers online mode of payment.
Competitive Landscape
The industry is fragmented with the presence of more than 25 players operating across the marketplace, pureplay, and omnichannel model. Delivery Cost, Delivery Time, App Interface, Discounts & Offers, Return Policy, Ease of Payment have been major factors influencing customer behavior. The major players include Carrefour, Instashop, Lulu Hypermarket, El Grocer, Kibsons, Bulkwhiz, and Bawiq. Companies with large product assortment, wide regional presence, and express delivery are identified as clear leaders in the industry.
Operating Models
Service providers have been following marketplace, Pureplay and Omnichannel model to deliver customer orders in UAE. Instashop, Bawiq, El Grocer has been following the marketplace model in UAE. Kibsons, Bawiq, Noon, Amazon follows the pureplay model. Whereas Carrefour, Lulu Hypermarket, Aswaaq, Choithrams follows the Omnichannel model.
Impact of COVID-19
Online grocery sales in the region have surged recently, as more people are avoiding crowded places and turning to online shopping owing to the corona pandemic. The average basket size of online order has increased to 15-20 times during the corona pandemic. Average delivery time for Omnichannel companies during the pandemic increased to 8-10 days. On the other hand, pureplay and marketplace companies were offering grocery delivery within 2-4 days and one day respectively.
Future Outlook and Projection
The demand is expected to grow with a CAGR of 34% on the basis of GMV between 2019 and 2025. Companies are anticipated to focus on expanding tie ups with suppliers & grocery stores to fulfill customer orders. The demand is expected to be driven by upcoming technologies such as Drone Delivery, Warehouse Automation, Voice Ordering and others. Market consolidation is expected in future as players with heavy financial backing and better brand value will acquire small players.
Key Segments Covered:
- By Region
Dubai
Abu Dhabi
Other Emirates
- By Age Group
18-24 years
25-34 years
35-44 years
45+ years
- By Product Category
Food & Beverages
Household Supplies
Beauty and Health
Baby and Kids
Fresh Food
- By Gender
Male
Gender
- By Mode of Payment
Pre-Delivery Online Payment
Card on Delivery
Cash on Delivery
Companies Covered
Carrefour
Lulu Hypermarket
Instashop
Kibsons
El Grocer
Trolley.ae
Bawiq
Amazon
Noon
Farmbox
Bulkwhiz
Key Target Audience
Online Grocery Delivery Companies
Supermarkets & Hypermarkets
E-commerce Companies
Food Delivery Companies
Investors
Time Period Captured in the Report:-
Historical Period: 2016–2019
Forecast Period: 2020-2025
Key Topics Covered in the Report:-
Difference between Online & Offline Grocery Shopping. Why Online Grocery is the Way Forward?
Target Addressable Audience
Supply Ecosystem and Competition Parameters
Demand Scenario, Target Customer and Factor Influencing Consumer Behavior
Technologies Facilitating Online Grocery Delivery Industry
Upcoming Technologies in Online Grocery Delivery Industry
Cross Comparison of Operating Models (Marketplace, Pureplay and Omni-channel)
Revenue Streams
Marketing Strategies
Addressable Gap in the Market and Possible Solutions
Emerging Business Strategies
Best Practices in Business
Seasonality Trends
Covid-19 Impact on UAE Online Grocery Delivery Market (Impact on KPIs, Monthly Orders, Impact on Consumer Behavior, What companies did to meet Excess Demand?)
Analyst Recommendations
Scope
1. Executive Summary
UAE Online Grocery Delivery Market Structure 2019
UAE Online Grocery Delivery Market Structure 2025F
2. Need and Opportunity
How is Offline Grocery Shopping Different from Online Grocery Shopping?
Why Online Grocery is the Way Forward
Target Addressable Market
Addressable Gap in the Market and Possible Solutions
3. Supply Scenario
Supply Infrastructure: Ecosystem for Grocery Retailers
Industry Business Cycle
Supply Side: Market Analysis & Growth Drivers
Supply Infrastructure: Regional Presence of Major Players
Challenges Faced by Online Grocery Delivery Companies
4. Demand Scenario
What My Customer Prefers?
Factors Influencing Customer Behavior
UAE Online Grocery Delivery Market Size on the basis of GMV, Annual Orders & Average Order Size, 2016-2019
Annual Grocery Demand By Product Type and Payment Mode
Where is the Online Grocery Delivery Market Concentrated in UAE?
Seasonality Trends
Impact of Covid-19 (Impact on Monthly Orders, Average Order Size, Delivery Time, Consumer Behavior and Steps taken by companies to meet Excess Demand)
5. Operating Models across UAE Online Grocery Market
Operating Model: Marketplace
Role & Responsibilities of Company and Partner Grocery Store
Operating Model: Pureplay
Operating Model: Onmichannel
Cross Comparison of Operating Models (Marketplace, Pureplay and Omnichannel) on the basis of Delivery Time, Inventory, Gross Margin, Product Assortment, Product Replenishment, Players, Advantages & Disadvantages
Revenue Streams of Companies Operating in Marketplace, Pureplay and Omnichannel Model
Gaps & Possible Solutions of Managing Logistics
6. Industry Analysis
Technologies Facilitating Online Grocery Delivery Industry
Upcoming Technologies in Online Grocery Delivery Industry
Features of an Grocery Delivery App
SWOT Analysis
Where does UAE Stands in Comparison to Other Mature Markets (China, UK, India & US)?
7. Competitive Landscape in UAE Online Grocery Market
Competition Scenario and Industry Unit Matrix
Business Landscape of Major Players including Year of Establishment, Business Model, Warehousing Capability, Most Demanded Product Category, Pick Up Service, Number of Partner Grocery Stores, Suppliers, Hypermarkets, Delivery Fleet, Product Listings, Delivery Charges, Delivery Time, Cancellation Rate & Employees
Performance Matrix of Service Providers
Financial Matrix of Major Players (Approximate Annual Orders, Market Share on the basis of Number of Orders, Market Share on the basis of GMV)
Strengths & Weakness of Service Providers
Investment Activities (Investors, Total Funding Amount, Funding Status and Latest Funding)
Company Profiles (Overview, Product Category, Business Model, Business Strategies, USP, Future Plans, Recent Developments)
- Carrefour
- Lulu Hypermarket
- Instashop
- Noon.com
- Kibsons
- El Grocer
- Bulkwhiz
- Amazon
- Bawiq
- Talabat
- Farmbox
8. Future Landscape of UAE Online Grocery Delivery Market
UAE Online Grocery Delivery Market Future Outlook to 2025 on the basis of GMV, Annual Orders and Average Order Size (2019-2025)
Operators to Expand in Dubai & Abu Dhabi and Facilitate Online Payment
What are the Upcoming Product Categories?
9. Case Study & Analyst Recommendations
How Can Companies Reduce Delivery Time and Delivery Cost?
Key Adoption Points(Personalized Consumer Experience, Introduce Private Labels to Increase Margins, Wallet Based Automated System, Achieving Operational Efficiency, Adopting Artificial Intelligence , Partner with Food Delivery Companies
How can Companies Promote themselves?
Why and How Subscription & Micro-Delivery Model can be Implemented?
10. Industry Speak
Interview with Amira Rashad, Co-Founder & CEO at Bulkwhiz
11. Appendix
Research Methodology
Disclaimer
Contact Us
License Type | Excel Only | Single User | Single User + Excel | Hard Copy | Corporate User License |
Deliverable Format | ![]() |
![]() |
![]() ![]() |
![]() |
![]() ![]() |
Download Option | ![]() |
![]() |
![]() |
![]() |
![]() |
User Sharing | Restricted to one registered login | Restricted to one registered login | Restricted to one registered login | Access to Printed Report; No Soft Copy | Multiple Users within the Company/ Enterprise |
Print Option | ![]() |
![]() |
![]() |
![]() |
![]() |
Copy Option | ![]() |
![]() |
![]() |
![]() |
![]() |
Citation | Yes (Not Publically; but to Private Parties within the company/ affiliate) | Yes (Not Publically; but to Private Parties within the company/ affiliate) | Yes (Not Publically; but to Private Parties within the company/ affiliate) | Yes (Not Publically; but to Private Parties within the company/ affiliate) | Yes (Not Publically; but to Private Parties within the company/ affiliate) |
Customization | ![]() |
![]() |
![]() |
![]() |
20% |
Analyst Time (Post Purchase Queries on Call/ Email) | ![]() |
![]() |
![]() |
![]() |
![]() |
Disclaimer : In no circumstance, the complete / part of the publication may be resold for monetary terms by the client or any other party related to the client or can be made available on third party website or on Google for general public view. |

In Depth Analysis of COVID 19 Impact on UAE Online Grocery Delivery Market
Respecting industry experts that are helping companies to survive and to sustain in this economic pandemic. We are working day and night to aid companies in taking rapid-decisions by finding
- COVID-19 Impact on Online Grocery Delivery, Increase in Number of Orders, Average Order Size, Delay in Delivery, Additional Expenditure incurred by companies on Logistics
- Strategies adopted by Service Providers during COVID 19
- Future Impact of COVID-19 on Online Grocery Industry
INQUIRE FOR COVID-19 IMPACT ANALYSIS
Products
Key Segments Covered:
- By Region
Dubai
Abu Dhabi
Other Emirates
- By Age Group
18-24 years
25-34 years
35-44 years
45+ years
- By Product Category
Food & Beverages
Household Supplies
Beauty and Health
Baby and Kids
Fresh Food
- By Gender
Male
Gender
- By Mode of Payment
Pre-Delivery Online Payment
Card on Delivery
Cash on Delivery
Key Target Audience
Online Grocery Delivery Companies
Supermarkets & Hypermarkets
E-commerce Companies
Food Delivery Companies
Investors
Time Period Captured in the Report:-
Historical Period: 2016–2019
Forecast Period: 2020-2025
Companies
Companies Covered
Carrefour
Lulu Hypermarket
Instashop
Kibsons
El Grocer
Trolley.ae
Bawiq
Amazon
Noon
Farmbox
Bulkwhiz