Last-mile delivery company feasibility study
Latest regulatory change: 2025 · reviewed 2026-11-05
A light transport company running couriers to deliver orders from shops and apps to the customer.
- 118 milliondelivery orders in Q1 2026[4]
- 49%annual growth in Q1 2026[4]
- 124 millionorders in Q4 2025[5]
Latest regulatory and market changes
- 2024The Transport General Authority (TGA) issued 6 decisions for the delivery sector, including requiring non-Saudis to work through light transport companies within 14 months, facial verification and a uniform.[1]
- 2024The first phase began: non-Saudis joining licensed light transport companies in Al Baha, Jazan, Najran and the Northern Borders, with freelance work there limited to Saudis.[2]
- 2025The Ministry of Municipalities and Housing (MoMAH) launched the home delivery permit via Balady from 1 July 2025, with conditions including health certificates for couriers.[3]
Why now
- Quarterly order volumes are growing at high annual rates.[5]
- Moving non-Saudis from freelance work into licensed light transport companies increases demand for these companies.[1]
- Concentration of orders in Riyadh, Makkah and the Eastern Province determines where volumes cluster.[4]
118 millionDelivery orders in Q1 2026, up 49% year on year, according to the Transport General Authority (TGA).[4]
The idea and business model
A licensed light transport company that employs drivers and deploys them for delivery apps and shops on the last mile. Revenue comes from per-order fees or monthly contracts with platforms and shops.
Model: Operating services
Project economics
Revenue formula
Sales channels
- Delivery app contracts
- Direct contracts with shops
- Business delivery
Largest cost items
- Driver salaries and residence permits
- Vehicles or motorcycles and their financing
- Fuel, maintenance and insurance
- Tracking and management systems
Decisive indicators we measure
- Orders per driver per day
- Cost per order
- On-time rate
- Vehicle utilisation
Relevant authorities
- Transport General Authority (TGA): light transport licence, operating card and driver verification
- General Directorate of Traffic: rules for motorcycles in delivery
- Ministry of Municipalities and Housing (MoMAH) via Balady: home delivery permit and health certificates
- Ministry of Human Resources and Social Development (HRSD): employment contracts
- Ministry of Commerce: Commercial Registration (CR)
What needs your attention
- The decisions are applied in phases by region, so the operating model differs from region to region.
- Reliance on a small number of platforms weakens pricing power.
- Driver, vehicle and fuel costs are the core of the margin per order.
What a Last-mile delivery company study calculates for you
- Full monthly cost per driver
- Daily orders per driver needed to break even
- Owning versus leasing vehicles
- Light transport licensing requirements in the region
- Revenue split between platforms and direct contracts
Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.
Sources
Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.
- "النقل" السعودية تصدر 6 قرارات تنظيمية لقطاع توصيل الطلباتالعربية · 2024-01
- بدء تطبيق المرحلة الأولى من قرارات تنظيم قطاع توصيل الطلباتالاقتصادية · 2024-04
- Saudi Arabia launches home delivery permit service for businesses, effective July 1Gulf News · 2025-06
- الهيئة العامة للنقل: 118 مليون طلب توصيل في الربع الأول 2026 بنمو 49%المدينة · 2026-04
- 124 مليون عملية لنشاط توصيل الطلبات خلال الربع الرابع من 2025اليوم · 2026-01
Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.