Saudi Last-Mile Grocery Delivery EV Two-Wheelers Market Size, Share, Growth Drivers, Trends, Opportunities, Competitive Landscape & Forecast 2025-2030

Saudi Arabia Last-Mile Grocery Delivery EV (Two-Wheelers) Market valued at USD 1.2 Bn, driven by e-commerce growth and sustainable transport in Riyadh, Jeddah, Dammam.

The Saudi Arabia Last-Mile Grocery Delivery EV (Two-Wheelers) Market is valued at USD 1.2 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for efficient and eco-friendly delivery solutions, coupled with the rapid expansion of e-commerce and grocery delivery services in urban areas. The shift towards sustainable transportation options has also contributed significantly to the market's expansion.

Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their high population density and robust infrastructure. These urban centers have seen a surge in online grocery shopping, leading to a greater need for last-mile delivery solutions. The concentration of retail and logistics companies in these cities further enhances their market dominance.

In 2023, the Saudi government implemented regulations to promote the use of electric vehicles in urban logistics. This includes incentives for companies adopting electric two-wheelers for last-mile delivery, aiming to reduce carbon emissions and improve air quality in major cities. The initiative is part of a broader strategy to enhance sustainability in the transportation sector.

Saudi Arabia Last-Mile Grocery Delivery EV (Two-Wheelers) Market Segmentation

By Type:

The market is segmented into various types of electric two-wheelers, including electric scooters, electric motorcycles, electric bicycles, and others. Among these, electric scooters are the most popular due to their affordability, ease of use, and suitability for urban environments. Electric motorcycles are gaining traction for longer delivery routes, while electric bicycles are favored for their eco-friendliness and health benefits. The "Others" category includes niche products that cater to specific delivery needs.

By End-User:

The end-user segmentation includes retail grocery chains, local grocery stores, and online grocery platforms. Retail grocery chains dominate the market due to their extensive distribution networks and established customer bases. Local grocery stores are increasingly adopting electric two-wheelers to enhance their delivery capabilities. Online grocery platforms are rapidly growing, driven by the convenience they offer consumers, leading to a significant increase in demand for last-mile delivery solutions.

Saudi Arabia Last-Mile Grocery Delivery EV (Two-Wheelers) Market Competitive Landscape

The Saudi Arabia Last-Mile Grocery Delivery EV (Two-Wheelers) Market is characterized by a dynamic mix of regional and international players. Leading participants such as Talabat, Nana, Carrefour, Lulu Hypermarket, Monsha'at, Zomato, Deliveroo, Fodex, Foodics, Jahez, Sary, Noon, Otlob, Fetchr, Careem NOW contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Last-Mile Grocery Delivery EV (Two-Wheelers) Market Industry Analysis

Growth Drivers

Increasing Urbanization:

Saudi Arabia's urban population is projected to reach 38 million in the future, accounting for approximately 85% of the total population. This rapid urbanization drives the demand for efficient last-mile delivery solutions, particularly in densely populated areas. The increasing number of urban residents, coupled with a growing preference for online grocery shopping, creates a significant market opportunity for electric two-wheelers, which can navigate congested city streets more effectively than traditional delivery vehicles.

Rising Demand for Convenience:

The convenience of home delivery services is becoming increasingly important to Saudi consumers, with 65% of households indicating a preference for online grocery shopping in the future. This trend is fueled by busy lifestyles and the desire for time-saving solutions. As consumers seek faster and more reliable delivery options, electric two-wheelers offer a practical solution, enabling quick deliveries while minimizing environmental impact, thus aligning with consumer preferences for convenience.

Government Support for EV Adoption:

The Saudi government has committed to reducing carbon emissions by 30% by 2030, promoting electric vehicle adoption through various incentives. In the future, the government plans to allocate $1.5 billion towards EV infrastructure development, including charging stations and subsidies for electric vehicle purchases. This support not only encourages businesses to invest in electric two-wheelers for last-mile delivery but also enhances the overall viability of the EV market in the grocery delivery sector.

Market Challenges

High Initial Investment Costs:

The transition to electric two-wheelers for last-mile delivery involves significant upfront costs, including vehicle purchase and infrastructure setup. In the future, the average cost of an electric two-wheeler is estimated at $4,000, compared to $1,800 for traditional scooters. This financial barrier can deter small and medium-sized enterprises from adopting electric solutions, limiting market growth and the overall shift towards sustainable delivery practices in Saudi Arabia.

Limited Charging Infrastructure:

As of the future, Saudi Arabia has only 1,500 public charging stations, which is insufficient to support a widespread transition to electric vehicles. The lack of accessible charging points poses a significant challenge for delivery services relying on electric two-wheelers, as range anxiety can hinder operational efficiency. Without substantial investment in charging infrastructure, the growth of the last-mile delivery EV market may be stunted, impacting service reliability and customer satisfaction.

Saudi Arabia Last-Mile Grocery Delivery EV (Two-Wheelers) Market Future Outlook

The future of the last-mile grocery delivery EV market in Saudi Arabia appears promising, driven by increasing urbanization and consumer demand for convenience. As the government continues to support electric vehicle adoption through incentives and infrastructure development, businesses are likely to invest more in electric two-wheelers. Additionally, advancements in technology, such as AI-driven logistics, will enhance delivery efficiency. The market is expected to evolve, focusing on sustainable practices and innovative delivery solutions that cater to the growing environmental consciousness among consumers.

Market Opportunities

Expansion of E-commerce Platforms:

The rapid growth of e-commerce in Saudi Arabia, projected to reach $15 billion in the future, presents a significant opportunity for last-mile delivery services. Collaborating with e-commerce platforms can enhance delivery efficiency and broaden market reach, allowing businesses to capitalize on the increasing demand for online grocery shopping.

Partnerships with Local Grocery Stores:

Forming strategic partnerships with local grocery stores can facilitate the integration of electric two-wheelers into existing delivery networks. By leveraging local knowledge and customer bases, delivery services can optimize routes and improve service reliability, ultimately enhancing customer satisfaction and driving growth in the last-mile delivery sector.