Delivery Hero buys Dubai grocery platform, InstaShop for $360 million.

Food and grocery delivery company, Delivery Hero has procured Dubai based online grocery platform, InstaShop for $360 million with the initial purchase price amounting to $270 million.

The company will allow Instashop to operate as an independent brand under its current leadership while the shops take care of the logistics.

Chief Executive Officer (CEO) and Co-Founder of Delivery Hero, Niklas Östberg said, “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.”

On the other hand, InstaShop which was founded in 2015 operates in the United Arab Emirates, Qatar, Egypt, Bahrain and Lebanon offers grocery delivery in its markets using a marketplace model. Instashop connects customers with grocery stores to facilitate the purchase and the stores take care of the logistics.

CEO and Co-Founder of InstaShop, John Tsioris stated, “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.”

According to a statement by Instashop, it generates about $300 million GMV (based on Q2 2020 annualized basis), up 330 percent year-on-year basis.

Regardless the impact of COVID-19 on businesses, Delivery Hero said its segment revenues almost doubled to $1.33 billion in the first half of 2020.