InstaShop, a homegrown on demand delivery app which was introduced to Dubai in 2015, on Thursday announced that it has been acquired by Berlin-based Delivery Hero in a deal reportedly worth $360 million.
The transaction marks the next step in Delivery Hero’s quest to pioneer q-commerce, the next generation of e-commerce, by joining forces with one of the largest online grocery platforms in the Middle East and North Africa.
John Tsioris, CEO and founder of InstaShop, said: “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… Delivery Hero is a network driven by ambitious founders and entrepreneurs just like ourselves, and we are proud to become part of this family.”
InstaShop was launched in June 2015 and, post-deal, the plan is to launch new markets and invest into further growth, a statement said.
InstaShop has onboarded various local retailers such as pharmacies, butcheries, pet shops and others and, with more than 500,000 active users in the first half of 2020, is present in five countries.
InstaShop connects customers with vendors and facilitates the purchase, while the shops take care of the logistics. It also offers scheduled as well as on-demand deliveries in 45 minutes on average.
Partnering with approximately 1,500 vendors, the company operates in five countries – the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon.
Niklas Ostberg, CEO and co-founder of Delivery Hero, said: “I’m delighted to welcome InstaShop to the Delivery Hero family… Together, we will continue to invest to drive the future of delivery by pushing the standards for speed and convenience.”
InstaShop will continue to operate as an independent brand under the current leadership, he added.
Delivery Hero has a presence in 39 out of 44 countries in which it is operating across Europe, Latin America, Asia, the Middle East and North Africa. It also operates its own delivery service primarily in over 600 cities around the globe. Headquartered in Berlin, Germany, the company has more than 27,000 employees.
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