Talabat, the UAE’s leading online food and grocery delivery platform, has officially completed its acquisition of InstaShop, a prominent grocery delivery service, from its German parent company, Delivery Hero. The deal, valued at $32 million, consolidates 100% of InstaShop’s share capital into Talabat’s financial framework, effective from February 25, 2025.
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Strengthening Talabat’s Market Position
The acquisition marks a significant milestone in Talabat’s expansion strategy, reinforcing its dominance in the grocery and retail sectors across the UAE and Egypt. With this move, Talabat’s pro forma gross market value in these sectors has surged beyond $2.5 billion over the past year.
Funded entirely through internal cash reserves, the purchase underscores Talabat’s financial strength and its commitment to growing its market footprint. The agreed purchase price reflects InstaShop’s capital value rather than its fair market value, following Delivery Hero’s corporate restructuring and Talabat’s successful IPO in December 2024.
What This Means for Customers
Tomaso Rodriguez, CEO of Talabat, emphasized the strategic benefits of the acquisition, stating: “By integrating InstaShop’s platform, we aim to create a more seamless and efficient delivery experience for our customers across the UAE and Egypt while driving further product and technology synergies across our business.”
Founded in 2015, InstaShop has rapidly grown into one of the MENA region’s most recognized online grocery marketplaces, connecting users with vendors and offering an extensive range of products, from groceries and pharmaceuticals to beauty essentials. The company reported a gross market value of $631 million in 2024, marking a 16% growth from the previous year.
Despite the acquisition, InstaShop will continue to operate as an independent brand under Talabat’s Grocery and Retail vertical. The integration promises to unlock operational efficiencies and drive technological advancements, benefiting both businesses and their customers.
A New Chapter for InstaShop
Nikola Cabarkapa, CEO of InstaShop, expressed optimism about the merger, 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 yield significant operational synergies, including:
- Expansion of Talabat’s Partner Network: Strengthening its vendor and merchant base across key markets.
- Optimized Operations: Leveraging shared resources for improved logistics and efficiency.
- Enhanced Technology Integration: Bringing innovative digital solutions to customers, ensuring a smoother shopping experience.
A Step Forward in Digital Retail
With this acquisition, Talabat is set to revolutionize the online grocery sector, offering consumers enhanced convenience, faster delivery, and a broader product selection. As competition in the digital retail space intensifies, this move positions Talabat as a dominant force in the industry, setting new benchmarks for service excellence in the UAE and beyond.
Stay tuned for more updates as Talabat and InstaShop embark on this exciting journey toward redefining grocery delivery in the region!
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