Saudi Arabian delivery application Shgardi has officially announced its permanent closure after six years of operation, signaling a dramatic shift in the Kingdom’s highly competitive food delivery sector. In a statement, the company cited “fierce competition” and aggressive “price-burning policies” as the primary drivers behind its exit. During its tenure, the platform successfully processed over seven million orders and served more than three million users across 35 cities and provinces in Saudi Arabia, making its shutdown a significant indicator of the intense pressures facing local startups in the current market.
The Triple Threat Collapse
Shgardi’s exit was not due to a lack of demand but rather a convergence of three critical pressures. The first was intense competition from dominant, well-funded players. Secondly, the market has been defined by a relentless price war, with major apps offering free or heavily subsidized delivery to capture market share—a strategy smaller players cannot sustain long-term. Finally, adapting to evolving regulations from the Public Transport Authority proved challenging, particularly concerning the “freelance courier” model, which no longer met new requirements for safety, worker rights, and operational governance.
A Market Dominated by Giants
The Saudi delivery landscape in 2025 is increasingly becoming a field for titans, leaving little room for smaller applications. The market is now shaped by three main forces:
- HungerStation: Continues to hold a commanding position, with over 50% market share in some major cities.
- Jahez: Commands approximately 30% of the market and is expanding its footprint regionally.
- Keeta: A formidable new entrant backed by Chinese tech giant Meituan, which has captured 10% of the market in less than a year. Keeta’s rapid growth is fueled by extremely low prices, significant incentives for couriers, and advanced AI-driven logistics.
This consolidation has created a graveyard for smaller apps, which struggle to compete not only financially but also in building sustainable operational models that comply with new safety and identity verification standards.
Regulatory Intervention and a Shift to Sustainability
In response to the market’s aggressive pricing tactics, regulatory bodies in the Kingdom have begun to intervene. New measures have been introduced to foster a more stable and sustainable environment, including mandating that non-Saudis work only through licensed transport companies, activating facial recognition for identity verification within apps, and imposing stricter controls on delivery operations and motorcycles. These regulations aim to shift the industry’s focus from rapid, unsustainable growth to a more secure and reliable ecosystem for consumers, couriers, and businesses. While consumers have benefited from lower fees and faster service, the long-term health of the market depends on moving beyond a “growth at any cost” mentality.
About Shgardi
Launched in early 2020 with a capital of 12 million SAR, Shgardi was a food delivery application owned by Safari for Trading and Marketing, a closed joint-stock company based in Khobar. The platform grew to serve over three million users across 35 locations in Saudi Arabia. In 2021, the company appointed Wathig Capital as a financial advisor for a planned capital increase and a potential listing on the Nomu parallel market, though these plans did not materialize before its eventual closure.
Source: Arab Founders
