Delivery Hero's grocery delivery platform InstaShop is now under the ownership of Talabat following a successful acquisition.
Talabat Acquires InstaShop for $32 Million, Bolstering Its Grocery and Retail Offerings
In a significant move to expand its presence in the grocery and retail delivery segment, Talabat, a leading delivery platform, has acquired InstaShop for $32 million. The deal, announced in March 2025, positions Talabat as a dominant player in the MENA region.
InstaShop, a leading online grocery delivery marketplace, operates in the UAE and Egypt. The acquisition will see InstaShop continue to operate as an independent brand within Talabat's Grocery and Retail vertical.
With this acquisition, Talabat aims to bolster its comprehensive delivery ecosystem by integrating convenience product deliveries alongside food. The move aligns with Talabat's broader expansion strategy, leveraging InstaShop's strong local presence and technology to enhance service offerings and increase market penetration in grocery delivery.
InstaShop connects users with vendors for a wide range of products, including groceries, pharmacy items, beauty essentials, and personal care products. In 2024, InstaShop's growth reached $631 million in GMV, a 16% increase from the previous year. This growth has significantly strengthened Talabat's position in the grocery and retail delivery segment.
Tomaso Rodriguez, CEO of Talabat, stated that the acquisition supports and complements their strategy to grow their Grocery and Retail offering. He further added that this move is part of Talabat's efforts to become a one-stop-shop for all delivery needs.
The acquisition has had a positive impact on Talabat's financials. Talabat's pro forma GMV for the grocery and retail vertical for 2024 surpasses $2.5 billion. This growth is a testament to Talabat's continued regional growth and solid market leadership in on-demand delivery services across multiple countries including the UAE, Saudi Arabia, Egypt, and others.
As a subsidiary of Delivery Hero SE with a publicly listed status on the Dubai Financial Market, Talabat continues to utilize global expertise and local acquisitions like InstaShop to drive innovation and maintain its market leadership. The company's investments in infrastructure, such as the launch of large distribution centers, further position it as a major player competing intensively in grocery and retail delivery within MENA.
In summary, the acquisition of InstaShop has significantly enhanced Talabat's market position, making it one of the dominant grocery and retail delivery platforms in the region. The move broadens Talabat's service range, fuels growth across key markets, and reinforces its commitment to becoming a one-stop-shop for all delivery needs.
In light of the acquisition, Talabat's comprehensive delivery ecosystem will now encompass technology-driven convenience product deliveries, in addition to food, thereby aligning with its broader expansion strategy.
This strategic move in the industry further positions Talabat, with its financial might, as a dominant player not only in the grocery and retail segment, but also in technology-driven delivery services within the MENA region.
