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New methods of shopping are transferred to mobile apps and websites instead of physical shops. Entrepreneurs have entirely changed their business strategies to meet the current customer’s demands. People search for all their goods and services through applications and websites. The reason behind the growth in online shopping is the convenience of buyers, offers and gifts, or lack of time. The number of online digital buyers worldwide was registered at 2.14 billion count in 2021. For the past few decades, e-commerce has been thriving at a faster pace. There is relentless transformation to online driven by the constructive transformation of technological capabilities into quicker, safer, and personalized experiences.

Further, the customer’s experience is evolving and driving the future e-commerce markets. In the UAE, online markets are also grabbing a significant part of the revenue shares. In 2020, according to Network International, UAE buyers spent about 40% higher than traditional shopping methods. Online retail comprises mainly grocery products to meet daily needs. In a pandemic, the grocery market is the biggest beneficiary and has grown around three times. Even after the situation was relaxed, customers stuck to electronic grocery shopping.

There are various grocery businesses present on virtual platforms. Among them, there is vicious competition viewed around the world. Though the pandemic was the key driver for the increase in demand for online business stores, it is also the UAE’s choice to comfort and follow the trends. Many grocery stores are managing to stay and grow in the electronic commerce market; Instashop has been shining out the UAE’s online market. Further in the blog, we will look over the business model of Instashop.

What is Instashop?

Instashop is an adjoining grocery purchasing and at-home delivery application that combines an on-demand supermarket market, pharma, restaurants, and other categories.
Instashop allows a vast menu of their items and a three-click selection of the items that customers require. It gives a versatile app that maintains everything within it simply with few taps on the handphone. Additionally, the solution has a driver person application, a store owner app, a store panel, and an admin panel.

Literal Facts and Figures About Instashop

Starting Year: 2015
Founders of Instashop: John Tsioris and Ioanna Angelidaki
Acquired By: Delivery Hero in 2020
Based: Jumeirah Lakes Towers, UAE
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

It is a UAE-based company that is a part of Jabbar Internet Group. The online shop was formed in 2015 by Greek entrepreneur Ioanna Angelidaki, and its co-founder and CEO are John Tsioris. Soon after its formation, it has been commanding the on-demand grocery market. It had earned over 3.5 lakhs per month of active users. Instashop is now being sold to Delivery Hero for a tremendous $360 million.

Who will not love to get their needs at their doorsteps whenever they want? Amid the corona outbreak, consumers were thrilled to get out, and markets have shown a steep fall in its revenues in UAE; Instashop was significantly after the situation and grew with that situation.

Instashop’s Simple Workflow

Instashop has been growing since 2015, with ease in its use and compatible integrated system. After being acquired by the Delivery Hero, Instashop has got several opportunities to thrive in the online market. It renders easy-to-use systems for its users and ensures an average time of 45 minutes for delivery. The Instashop provides elementary working that follows:

  1. Download and Register: Users can download the app on their mobile phones or can make use of the panel to register. Then add the location to get nearby stores to get instant services.
  2. Place the order: Either from the app or panel, select your shop or category to order from, and then choose the required list.
  3. The store approves and prepares: The store will accept or reject an order depending on its convenience. After accepting, it starts preparing for the order, notifying the users of that thing. When the order is ready, it will request the delivery man to get the parcel from the shop and deliver it to the buyer’s location.
  4. The provider will Deliver: The provider can approve the service request, pick up the order from the store, trace the user’s location, and hand over the order. Customers can pay either through online gateways or by cash to the provider after getting the parcel.

Customers, delivery men, and Stores will be notified of the stages of the ordering process. Customers can trace the order from the app while the delivery man is carrying the parcel. Also, the customers can schedule the order from the store at their convenience.

What Benefits Do UAE Users Find Using the Instashop?

Instashop allows a strong customer base for its stores. The options for review and ratings are attracting customers for their transparency in the apps and panel. With that, the stores can get the data to improve and upgrade based on the user’s suggestions given in the app. It creates a stronger relationship between them and creates a premier bond with the shoppers.

Although the shops or supermarkets need to create a physical room to keep a record of items and products, there is no need to create a shop for the customers, saving their months of rent and incentives. All these are resulting in a larger online grocery market acquired by the online platforms. CNBC has estimated that overall sales will surge to around 20% of the grocery market by 2025.

Brief on Business Model And Extend Value Orientation of Instashop

Instashop focuses on a business model with a two-sided marketplace for buyers and retailers both. Working as a liberated brand under the Delivery Hero’s leadership, it is dedicated to growing the sectors that are built on that sector. Also, Delivery Hero is concentrating on expanding globally. For the retailers who don’t have their delivery services can collaborate with Instashop and extend their business reach by acquiring a larger audience. In all, there are four outlooks of the business:

  • Customers
  • Store or Super Markets
  • Delivery Service Provider
  • Admin

Value Orientations of Instashop

Instashops provides benefits to all its buyers. Though it has some fixed expenses to be paid, like salaries to the employers, advertisements, marketing, and maintenance costs., it still has room for its users to earn and get profitable revenues.


  • Can order from an expansive menu, saves time of physical presence, and order multiple times.
  • Get safer payment gateways, cashback, savings, and discounts.


  • Can increase the orders via an online platform, extensive customer base, provide instant deliveries
  • Reduces the labor of physical work like attending to customers, keeping records of revenues, etc

Delivery Man

  • Can get extra earnings from a part-time job
  • Flexibility in work hours


  • Can run the business through an intuitive website with ease and earn a commission from the delivery man, store, and customers for handling the complex process.

Explore Instashop’s Revenue Stream

Instashop is a well-known online grocery shopping source for UAE people. It is working for its customers but still managing multiple channels for its income. There are various sources through which Instashop generates its revenues:

Delivery Service: It charges for delivery service to the shoppers. A tiny portion goes to the provider person and other incentives, saving most of it as revenue for it.

Commission: Instashop also saves a portion of the stores’ or supermarkets’ earnings as it boosts their business.

Additional: It can earn from advertisements on apps and websites. Also, sponsorship is a part of their revenue.

It has been thriving in many boundaries, which is earning a profitable amount every year. In 2020, more than five lakhs of active users were counted, spread over five countries currently. The instant growing strategies are laying them more profits and marketing.

Cost to Establish Instashop like App

Instashop is a well-built app that provides hassle-free services. By opting for an on-demand app development, you can get two solutions to establish your business online. It relies on a custom-based solution or a white-label solution; here, you can consider your business requirements to find a perfect fit.

The solution should have all the trendy features and streamlined layouts to shine in the competitive market. It should also include applications for Android and iOS to provide versatility to the customers. There are some of the fixed charges that it urges to take for the solution. The overall should include:

  • App interface.
  • App design
  • App’s advanced functions.
  • App size.
  • All other functionalities are required for the app.

Inspire to Set Up a Virtual Platform with Instashop Clone

The on-demand business methods can help extend the business revenues to the peak. In UAE, the physical business shifts to digital business methods to meet customers’ expectations to drift their business. By partnering with Delivery Hero, Instashop is excited to expand its business criteria in more geographical locations. The trends of online shopping are being estimated to last longer and even thrive over the years. If you want to join the worthwhile transformation of the business, contact us, and get complete help to set up your grocery store on the virtual process.