Delivery Hero's InstaShop acquisition by Talabat broadens the latter's focus on groceries.
Talabat Expands Grocery and Retail Delivery Segment with Acquisition of InstaShop
Talabat, the Middle East and North Africa's (MENA) leading food delivery platform, has strengthened its position in the grocery and retail delivery segment with the acquisition of InstaShop. The deal, which took place in March 2025, saw Talabat acquire InstaShop from Delivery Hero for $32 million [1].
InstaShop, a leading online grocery delivery marketplace, operates in the UAE and Egypt. In 2024, the platform reached a GMV of $631 million, marking a 16% increase from the previous year [2]. With this acquisition, InstaShop becomes a wholly-owned subsidiary of Talabat.
The acquisition significantly strengthens Talabat's position in the grocery and retail delivery segment. InstaShop will continue to operate as an independent brand within Talabat's Grocery and Retail vertical [3]. This move aligns with Talabat’s strategy to grow its retail and on-demand grocery delivery services across the MENA region.
The expansion positions Talabat as a major player in the quick-commerce and grocery delivery market. With capabilities to offer rapid delivery in key cities including Dubai and Riyadh, where delivery times can be under 20 minutes [4], Talabat is well-positioned to cater to the rising demand for convenience among consumers.
The growth of the grocery and retail segment is in line with broader regional trends in on-demand delivery services. Talabat's latest move further solidifies its footprint and operational efficiency in this area within the Gulf Cooperation Council (GCC) and the broader MENA markets [2][3][4].
Talabat maintains positive and improving EBITDA margins, and the pro forma GMV for its Grocery and Retail vertical for 2024 surpasses $2.5 billion, with InstaShop accounting for approximately 8% of this total [5]. The company's latest investment in logistics infrastructure, with the launch of its largest distribution center at Yanmu East Logistics Park, is aimed at boosting its retail delivery capacity and operational scale [1][3].
In conclusion, Talabat's acquisition of InstaShop and its subsequent investments in logistics infrastructure have fueled rapid growth in the grocery and retail delivery segment within the MENA region. The company's strategic moves position it as a key player in the quick-commerce and grocery delivery market, catering to the growing demand for convenience among consumers.
References: [1] Talabat Press Release, 2025. Talabat Acquires InstaShop. [2] Talabat Annual Report, 2024. Talabat Annual Report. [3] Talabat Blog, 2025. Talabat Launches Largest Distribution Center in the Region. [4] Talabat Press Release, 2024. Talabat Delivers Groceries in Under 20 Minutes. [5] Talabat Annual Report, 2024. Talabat Annual Report.
- This acquisition has allowed Talabat to tap into the financing needed to accelerate growth in the technology sector, specifically focusing on quick-commerce and grocery delivery.
- With InstaShop's capabilities in technology-driven online grocery delivery, Talabat aims to foster innovation in the finance and technology industries, improving operational efficiency and meeting the growing demand for convenience in the MENA region.
