Arab News, Saturday, Aug 29, 2020 | Muharram 10, 1442
Delivery Hero buys Dubai’s InstaShop as pandemic revenues surge
Emirates: Delivery Hero is buying Dubai-based online grocery
service InstaShop after the German company’s sales doubled in the first half of
the year.
The Berlin-based firm said it acquired all of the outstanding shares of
InstaShop based on a valuation of $360 million with the initial purchase price
amounting to $270 million.
Launched in 2015, Instashop operates in the UAE, Qatar, Bahrain, Egypt and
Lebanon.
“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,” said Niklas Östberg, CEO and Co-Founder of Delivery Hero.
The Dubai delivery firm has seen its business balloon during lockdown as more
people were forced to order in.
It works by connecting customers with vendors and facilitates the purchase,
while the shops take care of the logistics.
InstaShop will continue to operate as an independent brand under the current
leadership, Delivery Hero said in a statement.
Despite an initial negative impact from COVID-19, Delivery Hero said its segment
revenues almost doubled to $1.33 billion in the first half of 2020.
It raised its guidance for growth in the second half of the year which means it
expects total segment revenues of between $3.07 billion and $3.3 billion for the
full year 2020, up from $2.83 billion to $3.07 billion before.
Founded five years ago by Ioanna Angelidaki and John Tsioris, InstaShop has
grown to service more than 500,000 active users across five countries in the
region.