UAE’s talabat completes acquisition of instashop for $32m

UAE-based delivery platform talabat has finalised its acquisition of instashop, the grocery delivery platform, from its German parent company Delivery Hero for $32m.

This strategic move strengthens talabat’s grocery and retail portfolio in the UAE and Egypt, bringing its pro forma gross market value in those sectors to over $2.5bn for the previous year.

The acquisition, first announced in September 2024, was funded entirely through its internal cash reserves.

The company stated that the agreed purchase price reflects instashop’s capital amount rather than fair value due to Delivery Hero’s corporate restructuring and talabat’s initial public offering in December.

talabat to offer better services to customers across UAE and Egypt

“By integrating instashop’s platform, we aim to create a more seamless and efficient delivery experience for our customers across the UAE and Egypt whilst also driving further product and technology synergies across our business,” said Tomaso Rodriguez, chief executive of talabat.

Instashop, founded in 2015, has become a leading online grocery marketplace in the MENA region, connecting users with vendors and offering a wide range of products, from groceries and pharmacy items to beauty essentials.

In 2024, instashop achieved strong growth with a gross market value of $631m, a 16 per cent increase from the previous year.

This acquisition promises to unlock operational and technology efficiencies for both businesses, with integration activities already underway. Instashop will continue to operate as an independent brand within talabat’s Grocery and Retail vertical.

Rodriguez said: “This acquisition supports and complements our strategy to grow our Grocery and Retail offering and is a testament to our commitment to enhancing customer experience and providing customers with even greater choice and convenience.”

New chapter for instashop

Nikola Cabarkapa, CEO of instashop, also expressed enthusiasm about the partnership, stating, “This partnership will enable us to leverage talabat’s extensive network and operational expertise, allowing us to enhance our service delivery and continue our mission of providing exceptional convenience to our customers.”

The acquisition is expected to generate substantial operational synergies for talabat, including the expansion of its partner network, optimised operations through shared resources, and improved product and technology integration.