GCC ONLINE FOOD DELIVERY Competition and shift to q-commerce outweigh benefits from consolidation: Talabat to Sell from Buy

Research evidence excerpt

GCC ONLINE FOOD DELIVERY Competition and shift to q-commerce outweigh benefits from consolidation: Talabat to Sell from Buy

Equity Research

6 July 2026 | 4:48AM GST

GCC ONLINE FOOD DELIVERY

Competition and shift to q-commerce outweigh benefits from

consolidation: Talabat to Sell from Buy

Intense competition in food delivery has changed unit-economics Harsh Mehta

+971(4)376-3405 |

The GCC online food delivery market has seen competition shift away from quality harsh.mehta@gs.com

Goldman Sachs International

(experience, service and value) to promotions following Keeta’s market entry (in

Vaishnavi Gupta4Q24 in KSA and 2H25 in UAE, Qatar and Kuwait), with platforms focusing on +1(332)245-7817 |

gaining/defending market share through heavy discounting and free delivery. While vaishnavi.x.gupta@gs.comGoldman Sachs India SPL

the overall market has grown over the last two years, the competitive landscape has Swarnilee Patra

changed. Keeta now commands a one-third market share and has become the +1(332)245-7700swarnilee.patra@gs.com|

second-largest player in KSA and Kuwait, while also emerging as a fast-growing No.3 Goldman Sachs India SPL

player in the UAE and Qatar. This intense competition has led to weaker

unit-economics for the online food delivery platforms.

Rapid expansion into q-commerce supports platform diversification but may dilute

margins and increase capital intensity medium term

In response to declining market share and profitability in food delivery, the

incumbents are investing heavily in quick(q)-commerce (especially grocery and

retail) to build customer loyalty and capture a larger share of consumer wallet. This

strategy allows operators to establish an early presence in a fast-growing and still

underpenetrated market.