Saudi Arabia’s food delivery scene reshaped by Uber buyout

Saudi Arabia’s burgeoning food delivery scene is being reshaped once again, as Uber consolidates its position in the kingdom’s app-based transport market.

The U.S. rideshare and delivery giant is taking direct control of some of the Middle East’s biggest food and grocery delivery networks via its $14.8 billion takeover deal for Berlin-based Delivery Hero.

In Saudi Arabia, the deal brings market leader HungerStation, which operates in more than 100 cities across the kingdom and Bahrain, under Uber’s umbrella. The Public Investment Fund has direct exposure via its 3.58% stake in Uber, which is valued at about $5.24 billion, Arab News reports.

Combined with its ride-hailing service, the deal effectively turns Uber into the biggest player in Saudi Arabia, where its main competitors, Jahez Group and Keeta, are also aggressively expanding. Industry commentators expect it will herald further consolidation as players look to strengthen their market positions.

Uber will also swallow a majority stake in Dubai-listed Talabat, a business which has transformed the food industry across the Middle East since its launch in Kuwait 20 years ago. Talabat was valued at more than $10 billion when Delivery Hero listed 20% of its shares in a $2 billion IPO in 2024.

Talabat acquires Instashop for $32 million ahead of IPO

Talabat has completed the acquisition of Instashop for $32 million, consolidating the two major UAE-based food and grocery delivery brands under one company.

Both companies are controlled by German parent Delivery Hero, which initiated the merger as part of a corporate restructuring ahead of Talabat’s $2 billion IPO in December.

Instashop will continue to operate as an independent brand while leveraging Talabat’s expansive network, according to a statement issued Thursday.

“We aim to create a more seamless and efficient delivery experience for our customers across the UAE and Egypt whilst also driving further product and technology synergies across our business,” Talabat Chief Executive Tomaso Rodriguez said.