Market Entry Strategies of DoorDashh
Market Entry Strategies of DoorDashh
Market Entry Strategies of DoorDashh
The use of food delivery apps in the UAE is estimated to develop steadily, reaching
US$2.18 billion in 2022 and a projected annual growth rate of 8.5% (CAGR) by
2026, according to Statista's research. By 2026, there will be 6 million people using
online meal delivery services, which will cause the user penetration rate in this market
to quickly rise to about 45%. Thus, it is highly profitable to invest in this business in
UAE.
Acquisition
The first strategy that we’ll develop to enter in the Arab market is by acquiring the
food delivery leader in the region i.e. Talabat. One of Dubai's greatest, most
dependable, most reasonably priced meal ordering applications, Talabat, has been
fostering excellence and glory for years.
They have been dominating the meal delivery industry because to a talented staff, a
strong customer care system, and quick and accurate order fulfilment procedures. For
Emiratis throughout the UAE, Talabat's beneficial qualities work like magic.
Acquiring Talabat will help Doordash in the following ways:
1. Reduction of competition:
As Talabat is the market leader, the major competition would have been faced by
it only. So, acquiring it will remove major competition threat for the company and
give a competitive advantage in the market.
2. Customer loyalty:
Talabat has an extensive loyal customer base. The company would also enjoy
their customer base and would not have to struggle much in attracting customers
and already know the customer taste and preferences.
3. Access to the capital:
The company will also have access to a larger capital in UAE and thus expand its
operations easily.