Delivery Hero acquires online grocery marketplace InstaShop
Delivery Hero have announced their acquisition of InstaShop, an online grocery marketplace offering its services in the Middle East and North Africa. The acquisition is Delivery Hero’s next step in their quest to pioneer qcommerce.
InstaShop is a marketplace that connects customers with vendors and is currently home to around 1,500 sellers and brands in the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon. The marketplace offers grocery delivery both scheduled and on-demand in an average of 45 minutes. The company generates approximately 300 million USD GMV on a Q2 2020 annualized basis, up c. 330% year-on-year.
“I’m delighted to welcome InstaShop to the Delivery Hero family. The InstaShop team embodies our values and brings a strong vision and capabilities. As a leading player in the grocery segment, InstaShop has built a service customers love, and their expertise is a great addition to our quick commerce expansion. Together, we will continue to invest to drive the future of delivery by pushing the standards for speed and convenience. InstaShop was launched in June 2015 and is based in Dubai. The company generates approximately USD 300 million GMV on a Q2 2020 annualized basis, up c. 330% year-on-year, and a positive EBITDA margin. With Delivery Hero’s support, the plan is to launch new markets and invest into further growth.”
– Niklas Östberg, CEO and Co-Founder of Delivery Hero
According to Delivery Hero, InstaShop will continue to operate as an independent brand under the current leadership and is a complementary fit next to Delivery Hero’s current quick commerce strategy in the region with the possibility for future global expansion. Keeping a companies brand that has a stable foundation of trust with consumers is vital to a companies success after aquisition.. as can be seen in the case of Rakuten.
“The partnership with Delivery Hero is a great opportunity for us to continue to grow our business and put the group’s expertise to use. I really enjoyed working with Delivery Hero on this deal and am thrilled to continue to further expand the reach and quality of our service at InstaShop. Delivery Hero is a network driven by ambitious founders and entrepreneurs just like ourselves, and we are proud to become part of this family.”
– John Tsioris, CEO and Co-Founder of InstaShop