Skip to content

Talabat Acquires InstaShop for $32M to Boost MENA Grocery

The $32 million deal consolidates Talabat's grocery and retail dominance across the UAE and Egypt under a single unified delivery platform.

Talabat Acquires InstaShop for $32M to Boost MENA Grocery
Cover: Talabat
By DUBAI2 min read
0
AI summaryauto-generated
  • 1Talabat acquired 100% of InstaShop from Delivery Hero SE for $32 million, financed from internal cash reserves, with the deal closing on February 25, 2025.
  • 2InstaShop will operate as an independent brand within Talabat's Grocery and Retail vertical, keeping its app and identity while gaining Talabat's logistics network.
  • 3The combined Grocery and Retail vertical carries a pro-forma GMV exceeding $2.5 billion; InstaShop alone generated $631 million in GMV in 2024, up 16% year-on-year.
  • 4The acquisition is part of Delivery Hero's internal restructuring that followed Talabat's IPO on the Dubai Financial Market (DFM).
  • 5Key synergies include cross-listed partner networks, shared delivery fleets, and joint product and technology development across the UAE and Egypt.

Talabat has acquired the entire InstaShop business from Delivery Hero SE for $32 million, completing the transaction on February 25, 2025 using internal cash reserves. The deal brings together two of the MENA region's most prominent grocery and retail delivery platforms under one corporate roof.

What the Talabat–InstaShop Acquisition Means

InstaShop will continue to operate as an independent brand within Talabat's Grocery and Retail vertical. The acquisition is designed to generate synergies across three areas: expanded partner networks through cross-listing, optimised delivery fleet logistics, and deeper product and technology integration.

Together, the two platforms serve customers across the UAE and Egypt — Talabat's core markets. The combined Grocery and Retail vertical now carries a pro-forma GMV of more than $2.5 billion, with InstaShop alone posting $631 million in GMV during 2024, a 16 percent year-on-year increase.

Executive Statements

InstaShop CEO Nikola Cabarkapa welcomed the partnership, saying it will allow the company to leverage Talabat's extensive network and operational expertise to deliver outstanding convenience to customers.

Talabat CEO Tomaso Rodriguez said that integrating InstaShop's innovative platform into Talabat's operations will streamline delivery efficiency across UAE and Egypt while unlocking new technology and product capabilities for both platforms.

Strategic Context: Delivery Hero Restructuring

The deal is part of a broader internal restructuring within Delivery Hero, which originally acquired InstaShop in August 2020 for more than $360 million. The $32 million price tag is largely symbolic — reflecting an intra-group transfer that followed Talabat's listing on the Dubai Financial Market (DFM).

Founded in June 2015 and headquartered in Dubai, InstaShop has established itself as a leading online grocery delivery marketplace in the region. Its integration into Talabat's grocery and retail vertical is expected to accelerate growth across both UAE and Egyptian marketplaces.

What Changes for Users

For customers in the UAE and Egypt, InstaShop's app and branding will remain intact in the near term. Behind the scenes, Talabat plans to use shared resources, combined fleet logistics, and joint technology development to improve delivery speeds and broaden the product catalogue available through both platforms.

This acquisition reinforces Talabat's position as the dominant delivery platform in the MENA region and signals continued consolidation in the online grocery delivery space.

How did this story make you feel?

Share this story

Follow Us

Written by

Staff Writer

Reporting from Dubai — independent, on the ground, and built on local sources.