A Strategic Move in MENA’s Q-Commerce Landscape
Talabat, the leading on-demand food and grocery delivery platform in MENA, has fully acquired InstaShop from Delivery Hero SE for $32 million. With this deal, InstaShop now becomes a wholly owned subsidiary of Talabat, reinforcing its presence in the grocery and retail sector.
Despite the acquisition, InstaShop will continue to operate independently within Talabat’s Grocery and Retail division, ensuring a seamless experience for customers and partners.
The Growth Story of Talabat & InstaShop
Founded in 2004 in Kuwait by Abdulaziz Al Loughani, Mohammed Jaffar, and Khaled Al Otaibi, Talabat has expanded across the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt. Originally acquired by Rocket Internet in 2015 for $170 million, Talabat has since grown into one of the leading e-commerce and foodtech platforms in the region.
On the other hand, InstaShop was launched in 2015 by John Tsioris and is headquartered in Dubai, UAE. The platform connects users with local vendors, facilitating the quick delivery of groceries, pharmacy items, beauty essentials, and more. Operating in the UAE, Bahrain, Egypt, Lebanon, and Qatar, InstaShop has proven itself a strong player in the online grocery sector.
Why This Acquisition Matters
In 2024, InstaShop achieved a Gross Merchandise Volume (GMV) of $631 million, reflecting a 16% increase from the previous year. This figure accounted for 8% of Talabat’s total GMV, demonstrating its significant market strength.
The acquisition allows Talabat and InstaShop to share resources, optimize operations, and improve technology integration. The deal is expected to:
- Enhance customer experience with more product choices and better service
- Expand Talabat’s partner network through cross-listing opportunities
- Improve operational efficiency by sharing fleet resources
- Boost technological innovation in grocery and retail delivery
Leadership Insights on the Acquisition
Talabat CEO Tomaso Rodriguez expressed excitement about the acquisition, stating:
“Bringing InstaShop into the Talabat family strengthens our commitment to expanding our grocery and retail services. By integrating InstaShop’s innovative platform with our operations, we aim to provide even greater convenience to our customers across the UAE and Egypt. This partnership sets a new standard in online grocery and retail delivery.”
Similarly, Nikola Cabarkapa, CEO of InstaShop, shared his enthusiasm, saying:
“Joining forces with Talabat marks an exciting new chapter for InstaShop. With Talabat’s extensive network and expertise, we can enhance service delivery and further our mission of offering exceptional convenience to customers. This collaboration unlocks new opportunities for both businesses and partners.”
What’s Next?
With this acquisition, Talabat is set to redefine the grocery and retail delivery experience in MENA. By leveraging InstaShop’s capabilities, the company aims to scale operations, improve logistics, and offer customers a seamless shopping experience.
This move reinforces Talabat’s position as a leader in q-commerce and foodtech, signaling further innovation and expansion in the region’s digital marketplace.
