Ecommerce Platform Noon is Launching a Food Delivery Service

Saudi ecommerce platform, Noon, has announced the launch of a new food delivery arm under the name ‘Noon Food’. The new feature is dedicated to supporting local restaurants and cafes across the region during the COVID-19 pandemic. The platform will be available through Noon’s app, forming a fully-fledged ecosystem along with Noon’s other recent venture, NowNow, a grocery and essentials delivery service.

“When the virus hit, our F&B industry had little choice but to turn to aggregators who were charging up to 35 percent commission structures. Can we, as business leaders, survive with this? No. We have been held [to] ransom by food aggregator platforms. And that's not acceptable,” said Mohamed Alabbar, founder of Noon. “Our F&B industry is a part of the beating heart of this economy, and it has been severely impacted. We must do all we can to support and protect it.”

The food delivery service will also reflect the ecommerce giant’s M.O of taking lower commissions by offering far rates that will, according to Alabba,  level the playing field of F&B delivery. The percentage, while not yet disclosed, is reportedly at no more than 5%; a lower rate that other F&B delivery services charge. Businesses contracted with Noon Food can opt to utilise the service as a host platform for their online retail, or just use the company’s established delivery service, according to a statement. 

“We have all seen what's happening in the post-COVID-19 world – there is a real need to support the F&B industry and small businesses. Noon Food really will be a restaurant-first platform. It has been built specifically for food operators,” added Faraz Khalid, chief executive of Noon.