talabat Acquires Instashop Acquisition For $32 Million, Boosts Delivery Options

In a significant move within the UAE's online retail and grocery sector, talabat, a prominent delivery platform based in the region, has announced its acquisition of Instashop, a leading online grocery delivery marketplace. The deal, valued at $32 million (AED 117 million), signifies a strategic expansion for talabat, enhancing its footprint in the grocery and retail segments.

This acquisition follows talabat Holding's purchase of 100% of Instashop's share capital from Delivery Hero SE. With this move, talabat not only broadens its market reach but also boosts its pro forma Grocery and Retail Gross Merchandise Value (GMV) for 2024 to over $2.5 billion (AED 9 billion). This purchase is a clear indication of talabat's ambitious plans for growth in the coming years, especially in the grocery and retail divisions.

Instashop's performance in 2024 was notably strong, with a 16% increase in GMV from the previous year, reaching $631 million (AED 2.3 trillion). This growth accounted for eight percent of talabat's GMV for the same year. Instashop's success is not just in its revenue figures but also in its positive and improving EBITDA margins, underscoring its robust market presence and operational efficiency. This upward trend aligns perfectly with Talabat's strategy for rapid expansion into grocery and retail sectors.

Tomaso Rodriguez, Chief Executive Officer of talabat, expressed optimism about the acquisition, stating, "By integrating Instashop's innovative platform into our operations, 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. Together, we will unlock new opportunities for growth and innovation, setting a new standard in the online grocery and retail sector."

Echoing this sentiment, Nikola Cabarkapa, Chief Executive Officer of Instashop, highlighted the benefits of joining forces with talabat. He said, "Joining forces with talabat marks an exciting new chapter for Instashop. We have always been dedicated to connecting our users with their favorite local stores, and now, with Talabat's support, we can amplify our impact even further."

Cabarkapa further emphasised the synergy between the two companies, "The 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. We are excited about the significant customer and partner benefits this collaboration will bring and look forward to a successful journey ahead."

Despite the acquisition, Instashop will retain its brand identity and continue its operations independently within talabat's Grocery and Retail vertical. This decision ensures that Instashop's loyal customer base will continue to enjoy the services they have come to trust, while also benefiting from the enhanced capabilities and broader reach provided by talabat's network.