Talabat buys InstaShop from Delivery Hero for $32M in a major grocery push

Talabat is doubling down on grocery delivery. The UAE-based delivery giant has acquired InstaShop, a Dubai-born on-demand grocery platform, from its German parent company, Delivery Hero, for $32 million. The deal, first announced in September, was fully funded through Talabat’s internal cash reserves, the company confirmed on Thursday.

Talabat’s InstaShop Deal: What’s Behind the Deal?

With this acquisition, Talabat’s grocery and retail market value for 2024 has shot past $2.5 billion. The company has already started integrating InstaShop’s platform to optimize operations and enhance its tech stack.

For context, Delivery Hero originally snapped up InstaShop in 2020 for a whopping $360 million, hoping to cement its presence in MENA’s fast-growing grocery delivery market.

“As part of Delivery Hero’s corporate restructuring in September 2024, ahead of Talabat’s IPO, the agreed $32 million sale price of InstaShop reflects its capital amount rather than its fair market value,” Talabat noted in a statement.

Will InstaShop Stay Independent? Despite the acquisition, InstaShop will continue to operate as an independent brand under Talabat’s grocery and retail division. This keeps vendors on both platforms plugged into a broader audience, creating new cross-listing opportunities.

In 2024, InstaShop reported $631 million in gross market value—up 16% year-over-year—underscoring its staying power in the grocery delivery space.

Where Does This Put Talabat in the Market?

Talabat already dominates the UAE’s quick-commerce industry, where instant grocery delivery is becoming the norm. The InstaShop buyout further fortifies its position against rivals like London-based Deliveroo and Dubai-born Careem, both of which have been doubling down on multi-category delivery services, from food to pharmacy essentials.

Founded in Kuwait in 2004, Talabat moved its headquarters to the UAE in 2012. It now operates in eight countries, including Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq. The platform serves over six million customers through a network of 65,000 partner vendors and 119,000+ riders.

Talabat’s IPO and Its Blockbuster Financials Talabat made headlines in December 2024 when it launched a $2 billion IPO on the Dubai Financial Market, making it the biggest public listing in the Gulf that year. The stock offering saw massive investor demand, with double-digit oversubscription.

Since going public, the company has posted impressive growth numbers. In Q4 2024, net profit surged 54% year-on-year to $138 million, while revenue climbed 32% to $801 million. Full-year earnings reflected the momentum, with net profit jumping 64% to $346 million and revenue hitting $2.9 billion, a 32% year-on-year increase. Adjusted EBITDA also climbed 55% to $497 million.

InstaShop’s Next Chapter with Talabat The InstaShop acquisition gives the brand a chance to “tap into Talabat’s vast network and operational muscle,” said Nikola Cabarkapa, CEO of InstaShop.

“With Talabat’s backing, we can amplify our impact and unlock even more opportunities for customers and partners,” he added.

The deal marks another major bet on quick-commerce dominance, cementing Talabat and InstaShop’s role in shaping the future of online grocery delivery in the UAE and beyond.