Dubai-based Talabat reported a strong start to the year, with its Q1 2026 results showing significant growth in transaction volume and revenue, prompting the company to increase its net income guidance for the full year. The on-demand delivery platform navigated a dynamic regional environment to exceed performance expectations across key metrics.
Quick Facts
- GMV grew 18% to $2.7 billion
- Revenue up 23% to $1.0 billion
- Increased net income guidance by $20 million
- Non-GCC markets show 52% GMV growth
Performance Driven by Regional Trends
Talabat’s Gross Merchandise Value (GMV) hit $2.7 billion, an 18% increase year-on-year on a constant currency basis. This growth was driven by an expanding customer base and higher order volumes, influenced by improved Ramadan operations and favorable Eid seasonality. The company also noted that increased flexible work-from-home arrangements and distance learning contributed to a rise in “eat-at-home” consumption patterns.
Revenue for the quarter reached $1.0 billion, up 23% from the previous year. This outpaced GMV growth, primarily due to a higher share of revenue from its own grocery service, talabat mart.
Non-GCC Markets Drive Growth Surge
While the GCC remains Talabat’s largest segment, accounting for $2.1 billion in GMV, its growth in markets outside the Gulf was notably faster. The non-GCC segment, which includes Egypt, Jordan, and Iraq, saw its GMV jump by 52% to $563 million. This rapid expansion increased the segment’s contribution to total GMV from 16% to 21% compared to the same period last year.
In contrast, the more mature GCC markets (UAE, Kuwait, Qatar, Bahrain, and Oman) grew by 12%.
Fueling the ‘Everyday App’ Strategy
The company is moving forward with its previously announced $120 million investment plan for 2026, aimed at establishing Talabat as an “Everyday App.” During the first quarter, it deployed nearly $25 million toward this goal.
The investment is focused on three key areas: scaling the grocery vertical talabat mart by increasing store density and supply chain infrastructure; strengthening the talabat pro subscription service with more exclusive benefits; and developing new retail offerings and services to cover daily consumer needs.
Toon Gyssels, Talabat’s Chief Executive Officer, commented on the performance.
“We delivered a strong start to the year, with performance ahead of expectations, underpinned by disciplined execution and the strength of our multi-vertical model. Our strategy remains clear and we are fully committed to progressing with our investment plan announced earlier this year. We are confident in our ability to be the app that consumers rely on every day.”
The company also reaffirmed its full-year guidance for 11-14% GMV growth and expects to begin its recently approved share buyback program shortly.
About Talabat
Talabat is a leading on-demand delivery platform in the Middle East and North Africa (MENA) region. Founded in Kuwait in 2004, it operates in the United Arab Emirates, Kuwait, Qatar, Egypt, Bahrain, Oman, Jordan, and Iraq. Talabat is headquartered in Dubai, United Arab Emirates and is a subsidiary of Delivery Hero SE.
Source: Zawya
