Talabat Business Model: What Makes it the Biggest Food Ordering Service in the Middle East?

The innovations in the Online Food Delivery Market are growing with all leaps and bounds worldwide and the Middle East is no exception. Especially, if we talk about the UAE, Saudi Arabia, and Kuwait, the demand for on-demand food delivery apps is on the rise in all these nations.
The main reason behind this growth is the increasing popularity of online shopping in MENA due to the convenience it provides. As a result, food delivery apps like Talabat are generating millions of dollars in revenue by catering to the needs of a growing economy and some of the richest countries in the world.

At present, Talabat is the greatest player in the market having more than 6 million active users. And all because of its amazing strategies and business model. A few years ago, the Middle East had three major food-delivery apps – Talabat, Zomato UAE, and Uber Eats.

However, in March 2019, Talabat acquired Zomato in the UAE which gave it a massive edge over other competitors and its market share increased in the region. Later, Uber also had to shut down its services in the UAE, Saudi Arabia, and Egypt as it wasn’t able to compete with the major players and was running in losses.

So, at present, the market is relying on Talabat and it is today the leader in the food delivery market of the Middle East. In this article, we will talk about the Talabat Business Model to find out how the app works, makes money, and what strategies it followed to beat major players like Uber and Zomato. So, let’s get started.’

What is Talabat?

Details	Information
Founders	Khaled Al Otaibi & Abdulaziz Al Loughani
Founding Date	2004
Total Funding Raised	Over $2 billion
Headquarters	Kuwait City, Kuwait

Talabat is an online food delivery app that works kind of like a digital waiter.

You open the app, browse through your favorite restaurants or fast food spots, choose what you want to eat—whether it’s burgers, pizza, sushi, or even groceries—and place your order. Then, Talabat connects with the restaurant, gets your food prepared, and a delivery driver brings it right to your doorstep.

It’s super popular in the Middle East—especially in countries like the UAE, Kuwait, Qatar, and Saudi Arabia. Think of it as the Swiggy or Zomato of the Middle East.

Oh, and it’s not just limited to food. You can also order groceries, flowers, medicine, and more—basically anything you need quickly!

Talabat Stats and Facts: Funding and Major Milestones

• Founders: Abdulaziz Al Loughani
• Founded in: 2004
• Headquarter: Kuwait
• Acquired By: Rocket Internet for $170 Million
• Total Funding raised ($): $1.57 Billion

Talabat Success Story: A Willingness to Go Against the Grain

A subsidiary of Delivery Hero, Talabat is today the biggest online food ordering service in the Middle East. But, it had its own share of challenges and obstacles in the journey to become the giant in the food-delivery industry.

When a 33-year old entrepreneur figured out the ample opportunities available in the local food delivery market of Kuwait in 2005, nobody believed him. But, he did not lose hope. And that’s how innovations are made.

At that time, just 23% of the country’s population was using the internet, and thinking of a digital startup-like Talabat was considered something rubbish or a waste of time. Also, they had to go through the pain of finding delivery locations without Google Maps and the internet was as slow as a turtle back then.

But, disruptions are caused by those who don’t lose hope.

Entrepreneurs in the MENA region thank the founder of Talabat today for his stubborn nature, as he worked hard to scale the company and successfully set an example of how an industry can be transformed. Its acquisition for a whopping $170 Million, the biggest purchase of an internet company in its time, has encouraged many budding entrepreneurs and helped them realize the potential of the regional tech startup sector.

Here’s what Talabat’s CEO said about UAE in an interview with the local press:

Talabat has evolved from a small Kuwaiti-based startup to a leader in tech and the UAE was the top priority for us. The market in the UAE has grown incredibly fast in the last few years – from being a $10 Billion market in 2011 to a $14 Billion market in 2016. So there are ample opportunities for newcomers in the field
– Abdulhamid Al Omar, CEO, Talabat.

Presently, Talabat is known as one of the most technologically sound food delivery companies in the MENA region. The app operates in seven countries, namely, the UAE, Kuwait, Egypt, Qatar, Bahrain, Oman, and Jordan. Thus, we can say that “from a foolish-looking idea” to “a startup worth millions”, Talabat has come a long way.

Isn’t it inspiring? Launch Your Own Food Delivery App in 7 Days! Let’s Help You With a Customized Food Delivery Solution by Apptunix.

Read More: How to Build a Grocery Delivery App? 

How Does Talabat Work: Talabat Business Model Canvas

Talabat is an online food and grocery delivery platform that acts as a middleman between customers and local vendors. Users can browse nearby restaurants or stores, place orders via the app or website, and get their items delivered by Talabat’s fleet of drivers. It earns revenue through delivery fees, commission from vendors, and premium placements. With features like real-time tracking, digital payments, and scheduled deliveries, Talabat offers a seamless and convenient delivery experience.

For example, Uber Eats had to shut down its services in the UAE and Egypt because of its inefficiency to withstand the competition. But, Talabat is still the leader. The app won the hearts of the people in the Middle East by providing convenient and unmatchable services. Along with restaurants, it now lets users purchase items from gift shops, grocery stores, and flower shops.

Let’s have a look at how Talabat worked to win the market:

• Talabat operates on an on-demand hyperlocal delivery model, primarily focused on food and grocery delivery. It uses robust technology to efficiently connect customers with nearby restaurants, minimizing the gap between food cravings and quick delivery.

• The platform follows a dual partnership approach, serving both customers and restaurant partners. While customers enjoy fast delivery and convenience, restaurants benefit from increased visibility and a wider customer base—making it a win-win ecosystem.

• Talabat offers exclusive partnerships to restaurants, encouraging them to discontinue listings on competing apps in exchange for better deals and promotional support. This strategy helps restaurants streamline operations while boosting Talabat’s market share.

• Customers can access Talabat via its mobile app or website. They can browse nearby restaurants, view menus, explore offers, and place orders for food, groceries, or essentials with just a few taps.

• Once an order is placed, the restaurant gets notified, begins preparing the items, and Talabat assigns a nearby delivery partner to pick up and deliver the order to the customer’s specified address.

• Throughout the process, customers receive real-time updates about their order status and can track the delivery live via the app, ensuring transparency and a smooth user experience.

• Talabat enhances customer satisfaction with features such as easy app onboarding, simplified checkout, multiple payment options, GPS-based order tracking, in-app chat support, past order history, and a powerful search function to filter and find exactly what users want.

Talabat Revenue Model: How Does Talabat Make Money?

Using Talabat, customers can order a wide range of products, including food, groceries, flowers, and medicines, online from hundreds of nearby shops and restaurants. Just like its business model, Talabat’s revenue model is also unique, and it makes money using various revenue streams.

1. Commission from Restaurants

Talabat earns a significant portion of its revenue by charging commission fees from partner restaurants on every order placed through the platform. This fee can range from 15% to 30% depending on the partnership agreement.

2. Delivery Charges from Customers

Customers are often charged a delivery fee based on their location, restaurant distance, and order value. This fee goes partly to the delivery agent and partly to Talabat, depending on the structure.

3. Subscription & Loyalty Programs

Talabat offers subscription models or membership benefits in some regions where users can pay a small monthly fee to get free or discounted deliveries and exclusive offers.

4. Advertising & Sponsored Listings

Restaurants can pay Talabat to boost their visibility on the platform. Sponsored listings or banner ads allow them to appear at the top of search results, helping them attract more orders.

5. Exclusive Partnership Deals

Talabat forms exclusive contracts with restaurants who agree to list only on Talabat in exchange for reduced commissions or extra marketing support. These deals help Talabat reduce competition and boost revenue predictability.

6. Grocery & Pharmacy Commissions

Apart from food, Talabat also earns by delivering groceries, medicines, flowers, and other essentials, taking commissions from these vendors similar to restaurants.

7. Convenience Fees & Service Charges

For specific orders, Talabat may add a small convenience or service fee to cover operational costs—especially during peak hours or for high-demand items.

8. White-Label Logistics Services (B2B)

In some regions, Talabat also offers last-mile delivery logistics services to other businesses—leveraging its vast delivery network as a revenue stream beyond the app itself.

What Are The Features Of A Food Delivery App Like Talabat?

Let’s get down to the detailed features of a food delivery app like Talabat, with special emphasis on the three main panels: User Panel, Restaurant Panel, and Delivery Agent Panel.

1. Customer Panel Features

• User Registration & Login
  Easy signup via email, phone number, or social media accounts.

• Location Detection & Delivery Address
  Auto-detect location or manually add multiple delivery addresses.

• Browse Restaurants & Menus
  Search and filter restaurants by cuisine, ratings, offers, price, delivery time, etc.

• Real-Time Order Tracking
  Track order preparation and delivery status live on the map.

• Multiple Payment Options
  Support for credit/debit cards, wallets, cash on delivery, and digital payment gateways.

• Order History & Reordering
  View past orders and reorder favorites quickly.

• Ratings & Reviews
  Rate restaurants and delivery experience; read customer feedback.

• In-App Chat & Support
  Chat with customer support or the delivery agent for quick help.

• Offers, Discounts & Loyalty Programs
  Access to promo codes, coupons, and loyalty rewards.

• Schedule Orders
  Option to pre-order food or groceries for a specific time.

• Push Notifications
  Alerts for order status, offers, and app updates.

2. Restaurant Panel Features

• Restaurant Profile Management
  Update menu, prices, photos, and business hours.

• Order Management
  View new orders, accept/reject requests, and update order status.

• Inventory Management
  Track available items and update stock status.

• Promotions & Discounts
  Create special offers and deals to attract more customers.

• Sales Analytics & Reports
  Access data on orders, revenue, popular dishes, and customer feedback.

• Multiple Branch Management
  Manage multiple outlets from a single dashboard.

• Payment Settlement
  View payment history and manage payouts from Talabat.

3. Delivery Agent Panel Features

• Agent Registration & Profile
  Simple signup and profile verification.

• Order Alerts & Acceptance
  Receive new delivery requests and accept or reject.

• GPS Navigation & Route Optimization
  Built-in maps with the best routes to restaurant and customer.

• Real-Time Order Status Updates
  Update order pickup and delivery status.

• Earnings & Incentives Tracking
  View daily/weekly earnings, tips, and bonuses.

• In-App Chat
  Communicate with customers or support when needed.

• Availability Toggle
  Mark yourself available or unavailable to receive orders.

4. Admin Panel Features

• Dashboard & Analytics
  Monitor app performance, orders, revenue, user activity, and delivery status.

• User Management
  Manage customers, restaurants, and delivery agents’ profiles and permissions.

• Order & Payment Management
  Track all orders, resolve disputes, and oversee payment settlements.

• Promotions & Campaigns
  Create and manage platform-wide offers, discounts, and marketing campaigns.

• Content Management System (CMS)
  Update app content such as FAQs, policies, and banners.

• Reports & Insights
  Generate detailed reports on sales, delivery times, and user engagement.

• Commission & Pricing Management
  Set and adjust commission rates for restaurants and delivery fees for users.

• Support & Feedback Management
  Handle complaints, reviews, and customer support tickets.

Additional Features for Enhanced Functionality

To further enrich the user experience and operational efficiency, consider integrating the following advanced features:

1. Loyalty Programs

Reward systems that offer points or discounts for frequent users encourage repeat business.

2. Multi-Language and Currency Support

Catering to a diverse user base by offering multiple language options and accepting various currencies.

3. Social Media Integration

Allowing users to share their experiences or favorite dishes on social platforms enhances brand visibility.

4. Real-Time Analytics

Comprehensive dashboards for administrators to monitor app performance, user behavior, and other key metrics.

5. Advanced Search Filters

Enabling users to search based on dietary restrictions, preparation time, or user ratings for a more personalized experience.

📲 Don’t waste time guessing. Check out the Top 15 App Development Companies in Saudi Arabia trusted by startups and enterprises.

How Much Does it Cost to Develop a Food Delivery App Like Talabat?

The cost to develop a food delivery app like Talabat depends on various factors including the app’s feature complexity, the number of user panels (customer, restaurant, delivery agent, admin), supported platforms (iOS, Android, or both), and the choice of technology stack. Additional elements such as custom UI/UX design, integration of third-party APIs (payment gateways, GPS tracking, push notifications), and backend infrastructure scalability also impact the budget. Moreover, the geographic location of the development team influences hourly rates, while ongoing maintenance and support contribute to the total cost over time.

Below is a breakdown of estimated development cost for food delivery app like Talabat based on app complexity and features.

Factors Impacting the Cost of Building a Food Delivery App Like Talabat

The price tag on your dream app depends on several factors. Let’s dive into the big ones:

1. App Complexity & Feature Set

The number and sophistication of features like real-time GPS tracking, multiple payment gateways, in-app chat support, order management system, ratings and reviews, and push notifications greatly influence development time and cost.

2. Platform Selection

Choosing between native development for iOS and Android, or a cross-platform framework like Flutter or React Native affects both the development timeline and budget.

3. Custom UI/UX Design

Investing in a customized user interface and a seamless user experience demands more design resources, resulting in higher costs compared to using pre-built templates.

4. Third-Party Integrations

Incorporating external services such as payment processors (Stripe, PayPal), mapping APIs (Google Maps, Mapbox), push notification services, and SMS/email gateways adds complexity and cost.

5. Backend Infrastructure & Scalability

Building a robust backend with scalable server architecture, database management, and cloud hosting ensures the app can handle growing users and orders, impacting initial and ongoing expenses.

6. Development Team Location & Rates

The hourly rates for developers vary by geography, with North America and Western Europe typically charging more than Asia, Eastern Europe, or the Middle East, which affects the overall project budget.

7. Maintenance, Updates & Support

After launch, continuous bug fixes, feature enhancements, security updates, and server maintenance require dedicated resources and budget allocation.

8. Marketing & User Acquisition Costs

Budgeting for digital marketing, promotions, advertising campaigns, and customer engagement strategies is essential to grow and sustain the app’s user base.

Top Benefits of Building an App Like Talabat

Let’s take a look at top benefits of building app like Talabat:

1. Access to a Growing On-Demand Delivery Market

With rising consumer demand for convenient food and grocery delivery, building an app like Talabat taps into a fast-growing, lucrative market.

2. Multiple Revenue Streams

Apps like Talabat generate revenue from commissions, delivery fees, advertising, and subscription models, creating diversified income opportunities.

3. Broad Customer Reach and Engagement

A well-designed delivery app reaches a broad audience, including busy professionals, families, and students, increasing brand visibility and customer loyalty.

4. Strong Vendor Partnerships

Partnering with local restaurants and stores boosts their sales while expanding your app’s offerings, creating a mutually beneficial ecosystem.

5. Improved Customer Convenience and Satisfaction

Providing a seamless ordering experience with real-time tracking, multiple payment options, and quick delivery increases user satisfaction and retention.

6. Scalability and Expansion Opportunities

Once established, the app can easily expand to new cities, countries, or add verticals like grocery, pharmacy, or flowers, increasing market potential.

7. Data-Driven Insights for Business Growth

Collecting user behavior and order data helps optimize marketing, inventory, and delivery logistics, enhancing operational efficiency.

8. Competitive Advantage through Technology

Advanced features like AI recommendations, chat support, and GPS tracking differentiate your app from traditional food delivery methods.

9. Brand Building and Market Leadership

A successful app can establish your brand as a trusted market leader in the on-demand delivery industry.

Why Apptunix Is Your Best Bet for Building a Food Delivery App Like Talabat

If you’re serious about building the next big thing in food delivery, you need more than just developers. You need Apptunix. We’re not just coders; we’re creators of success stories. At Apptunix, we transform your idea into a powerful, user-centric, and revenue-generating app that stands tall among giants like Talabat. With years of hands-on experience, a top-tier team, and deep industry know-how, we help startups and enterprises launch food delivery platforms that actually thrive in today’s competitive market.

Here’s Why So Many Brands Trust Apptunix:

• Custom Solutions: Whether you’re launching a local startup or a nationwide delivery platform, we build tailored apps that suit your unique needs.
• Faster Time to Market: Our ready-to-go food delivery solutions mean you can launch in as little as 3 days.
• Proven Track Record: From powering McDonald’s app in India to building successful platforms in the UAE and Bahrain, our work speaks for itself.

Wrapping Up

So, this was all about the Talabat Business Model. The company surely came a long way from being a tech startup in the early days of the internet to being the biggest food delivery business in the Middle East. Especially in the UAE, the on-demand food ordering industry is growing fast.

Thus, there is plenty of room for any new food delivery startup to flourish in the region and earn millions of dollars in sales. Get in touch with Apptunix, a mobile app development company to help you, we are just a call away!