Talabat's acquisition of Dubai-based platform instashop last week could be a catalyst for more consolidation in the food and grocery delivery industry, as more and more platforms turn into super apps, industry analysts say.
However, potential challenges on competition and job security are also likely in the industry, in addition to the effects consolidation would have on fair consumer pricing.
UAE-based talabat bought instashop from German parent company Delivery Hero for $32 million, boosting its grocery and retail portfolio in the Emirates and Egypt, and bringing its pro forma grocery and retail gross market value for last year to more than $2.5 billion.
That could bring more momentum to the consolidation trend, with companies seeking economies of scale, expanding their customer base and enhancing operational efficiency in an increasingly competitive market, said Olivier Tricou, managing director of Dubai-based Alpen Capital.
"More mergers and acquisitions are likely to happen, as companies seek to strengthen their market positions and diversify their services," he told The National.
Talabat's acquisition of instashop looks set to "accelerate market consolidation in the Mena delivery sector", agreed Salem Al Remeithi, chief executive of SHR Capital.
"This strategic move creates a more powerful integrated platform with expanded service offerings, putting pressure on competitors to pursue similar strategies," he told The National. "Smaller players may struggle to compete independently against such comprehensive delivery ecosystems, driving them toward mergers or acquisitions to remain viable ... further concentrating market power among fewer, larger entities."
While talabat and instashop are eventually subsidiaries of the same holding company, Delivery Hero, analysts touted the deal as a "significant" one, given the potential to serve more customers at scale in a region increasingly dependent on technology platforms.
The deal will enable talabat to tap into instashop's grocery and retail portfolio, potentially improving service efficiency through integrated logistics networks and shared technology, Mr Al Remeithi said.
"This one-stop solution approach enhances user experience while possibly leveraging economies of scale for competitive pricing," he said. "The deal could intensify competition in the regional delivery market, likely driving innovation as competitors respond to talabat's expanded capabilities."
Talabat is among a number of players in the UAE catering to the key on-demand food and quick-commerce markets, as more consumers and businesses rely on convenience and choice. Its major rivals include Careem, noon and deliveroo, which provide access to a mix of food, grocery, ride-hailing, medicines, home services and payments.
They are all expanding their offering as part of efforts to become super apps, or applications that provide one-stop services across different segments.
"The industry's evolution into a multi-service ecosystem, incorporating food, groceries, mobility and payment solutions, reflects a growing consumer demand for convenience," said Sumesh Krishna, a senior partner at Dubai-based tax advisory HLB Hamt.
Online business channels, including food aggregators and last-mile delivery platforms, are poised to play a “pivotal role” in reshaping the dynamics of the Gulf’s food market, Alpen Capital said in a previous report.
The online food delivery market in the UAE is expected to hit nearly $1.14 billion in 2025 and grow at a compound annual rate of 14 per cent to $1.3 billion by 2029, data by Statista shows.
Globally, the sector is expected to reach a value of more than $257 billion this year, and rise roughly 150 per cent to about $637 billion by 2034, according to India-based Precedence Research.
The industry is currently in "a quite mature stage", having received a boost during the pandemic which "radically" shifted consumer habits, said Alexander Ponomarev, chief executive of Syrve MENA, a restaurant technology service provider based in Dubai. "Since people have built the habits of buying things online, they are now used to getting their food and groceries online as well."
Impact on jobs
One of the main challenges for industry operators currently is the allocation of the workforce within the demand schedule, which is distributed "quite unevenly" across the day, said Mr Ponomarev.
"This leads to increased load during peak hours and hours of idle time when the demand is low. The delivery services aiming to utilise the work hours efficiently are attempting to stretch it to the grocery purchases, which usually happen during different time slots in comparison to the prepared food," he told The National.
However, the talabat-instashop deal may have a "mixed effect" on the gig economy workforce: the merger might accelerate technological integration, potentially altering job quality and quantity, possibly cutting jobs, Mr Al Remeithi said.
"The impact will vary across markets, with densely populated urban areas likely seeing the most significant changes. Overall, while job numbers might decrease initially, the long-term effect depends on how the merged entity balances efficiency gains against workforce expansion and market share gains," he said.
Another challenge is the actual ability of these companies to lower prices: while the talabat-instashop deal aims to boost operational efficiency and may result in better service, decreased pricing is unlikely "as the main cost generating factor here is still the grocery assortment itself", said Mr Ponomarev.
"The pricing has been galloping over the last few years for various reasons globally. Still, enjoying a better service in a market reality that has been formed and maintained is great."Moves by players to increasingly acquire niche platforms to widen market reach may also lead to fewer choices and stifle innovation in the long run, Mr Krishna said.
"The sector is expected to thrive as digital adoption rises, with investments in artificial intelligence, automation and innovative solutions like drone deliveries," he told The National. "Although these advancements promise improved service quality and broader offerings, careful attention is needed to ensure that competition fosters continuous innovation and fair consumer pricing."
Consolidation may lead to fewer service providers, but larger companies can offer more reliable services and competitive pricing due to increased efficiency, said Mr Tricou.
Looking ahead, the industry is being led by technological advancements and changing consumer preferences for convenience, with the emergence of super apps offering diverse services, and the data monetisation linked to it, he said.
"The shift towards super apps integrating services like food delivery, transportation, and payments is a significant trend, as seen with platforms like Careem. Demand is expected to grow, with companies exploring tech solutions. Drones can enhance delivery efficiency, even if drone delivery is heavily linked to regulatory approval," he added.
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
The specs: 2019 Audi A7 Sportback
Price, base: Dh315,000
Engine: 3.0-litre V6
Transmission: Seven-speed automatic
Power: 335hp @ 5,000rpm
Torque: 500Nm @ 1,370rpm
Fuel economy 5.9L / 100km
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
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Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
Company%20Profile
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SRI LANKA SQUAD
Upul Tharanga (captain), Dinesh Chandimal, Niroshan Dickwella
Lahiru Thirimanne, Kusal Mendis, Milinda Siriwardana
Chamara Kapugedara, Thisara Perera, Seekuge Prasanna
Nuwan Pradeep, Suranga Lakmal, Dushmantha Chameera
Vishwa Fernando, Akila Dananjaya, Jeffrey Vandersay
Match info
Bournemouth 1 (King 45 1')
Arsenal 2 (Lerma 30' og, Aubameyang 67')
Man of the Match: Sead Kolasinac (Arsenal)
DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
Ireland (15-1):
Ireland (15-1): Rob Kearney; Keith Earls, Chris Farrell, Bundee Aki, Jacob Stockdale; Jonathan Sexton, Conor Murray; Jack Conan, Sean O'Brien, Peter O'Mahony; James Ryan, Quinn Roux; Tadhg Furlong, Rory Best (capt), Cian Healy
Replacements: Sean Cronin, Dave Kilcoyne, Andrew Porter, Ultan Dillane, Josh van der Flier, John Cooney, Joey Carbery, Jordan Larmour
Coach: Joe Schmidt (NZL)
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
RESULTS
6pm: Mazrat Al Ruwayah – Group 2 (PA) $40,000 (Dirt) 1,600m
Winner: AF Alajaj, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
6.35pm: Race of Future – Handicap (TB) $80,000 (Turf) 2,410m
Winner: Global Storm, William Buick, Charlie Appleby
7.10pm: UAE 2000 Guineas – Group 3 (TB) $150,000 (D) 1,600m
Winner: Azure Coast, Antonio Fresu, Pavel Vashchenko
7.45pm: Business Bay Challenge – Listed (TB) $100,000 (T) 1,400m
Winner: Storm Damage, Patrick Cosgrave, Saeed bin Suroor
20.20pm: Curlin Stakes – Listed (TB) $100,000 (D) 2,000m
Winner: Appreciated, Fernando Jara, Doug O’Neill
8.55pm: Singspiel Stakes – Group 2 (TB) $180,000 (T) 1,800m
Winner: Lord Glitters, Daniel Tudhope, David O'Meara
9.30pm: Al Shindagha Sprint – Group 3 (TB) $150,000 (D) 1,200m
Winner: Meraas, Antonio Fresu, Musabah Al Muhairi
Ponti
Sharlene Teo, Pan Macmillan
25-MAN SQUAD
Goalkeepers: Francis Uzoho, Ikechukwu Ezenwa, Daniel Akpeyi
Defenders: Olaoluwa Aina, Abdullahi Shehu, Chidozie Awaziem, William Ekong, Leon Balogun, Kenneth Omeruo, Jamilu Collins, Semi Ajayi
Midfielders: John Obi Mikel, Wilfred Ndidi, Oghenekaro Etebo, John Ogu
Forwards: Ahmed Musa, Victor Osimhen, Moses Simon, Henry Onyekuru, Odion Ighalo, Alexander Iwobi, Samuel Kalu, Paul Onuachu, Kelechi Iheanacho, Samuel Chukwueze
On Standby: Theophilus Afelokhai, Bryan Idowu, Ikouwem Utin, Mikel Agu, Junior Ajayi, Valentine Ozornwafor
Miguel Cotto world titles:
WBO Light Welterweight champion - 2004-06
WBA Welterweight champion – 2006-08
WBO Welterweight champion – Feb 2009-Nov 2009
WBA Light Middleweight champion – 2010-12
WBC Middleweight champion – 2014-15
WBO Light Middleweight champion – Aug 2017-Dec 2017
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
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Omar Yabroudi's factfile
Born: October 20, 1989, Sharjah
Education: Bachelor of Science and Football, Liverpool John Moores University
2010: Accrington Stanley FC, internship
2010-2012: Crystal Palace, performance analyst with U-18 academy
2012-2015: Barnet FC, first-team performance analyst/head of recruitment
2015-2017: Nottingham Forest, head of recruitment
2018-present: Crystal Palace, player recruitment manager
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
- Biodiversity: Support species like sea turtles, dugongs, and seabirds
- Coastal protection: Reduce erosion and improve water quality
