U.K.’s Zapp to launch in Dubai’s crowded food delivery market

Zapp, a British grocery delivery startup, plans to launch in Dubai this year, entering an already crowded and competitive Middle Eastern market.

The company, which launched during the pandemic, saw valuations drop as workers returned to office and inflation hit delivery spending.

“We are always looking for opportunities to grow our business and are considering launching in the region as early as this year,” a Zapp spokesperson said in a statement to Bloomberg.

Zapp says it’s rebounding by focusing on high-end goods, generating over $100 million in U.K. sales in 2024 through partnerships with brands like LVMH and Fortnum & Mason, the news agency said.

Zapp’s entrance to the market is the latest of series in a highly competitive market for delivery companies. Keeta, the international arm of China’s Meituan, has captured 10% of Saudi Arabia’s food delivery market just four months after launch.

Talabat, the Middle East branch of Germany’s Delivery Hero, raised $2 billion in December through an IPO on the Dubai Financial Market. The company acquired full control of Instashop from Delivery Hero two weeks ago for $32 million.