If you haven’t heard of Delivery Hero, a Berlin-based restaurant delivering company, but a familiar with Talabat, just know that the former is the parent company of the latter.
The parent company is looking for further expand and bolster their delivery arm, building on top of the successful foundation of their food delivery business. Announced on their blog, Delivery Hero has acquired Dubai-based InstaShop for an initial total of $270 million.
The COVID-19 pandemic has really demonstrated that people in the Middle East can shop online from the comfort of their homes. Since the start of 2020, grocery deliveries has emerged as one of the hottest categories in e-commerce. This announcement already builds on the trend of successful and stable Middle East-based startups being acquired by international businesses (e.g. Uber acquiring Careem).
Delivering the details
Founded by Ioanna Angelidaki and John Tsioris, InstaShop first launched as a grocery delivery app in Dubai circa June 2015. Evolving as a homegrown marketplace-on-demand delivery app, they’ve onboarded various local retailers such as pharmacies, butcheries, pet shops and others. This has helped them evolve into a one stop-shop solution.
According to Delivery Hero’s filing, InstaShop has more than 500,000 active users in H1 2020 and an annualised gross merchandise volume of $300 million. Supporting those numbers are close to 300 members of staff at InstaShop across the region. The platform currently operates in five countries with more than 1,500 vendors: UAE, Qatar, Bahrain, Lebanon, and Egypt.
Delivery Hero’s plan for InstaShop looks to be expanding into new markets and investing into further growth. To allay any fears on the brand name, InstaShop will continue to operate as an independent brand under the current leadership of its founders.
You might think whether this is about bolstering their own Daily by Talabat service. InstaShop will help complement the quick commerce strategy in the Middle East region due to their familiarity. Even as some retail brands dive into the online shopping trend with their own efforts, InstaShop has already established itself and Delivery Hero’s backing will help them grow
Image credit: InstaShop
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Denial Gomes 14 Sep 2020
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