Talabat, a UAE-owned multinational online food and grocery
delivery platform, has been expanding aggressively across Middle Eastern
countries including the UAE, Kuwait, Oman, Qatar, Bahrain, Saudi Arabia, and
Egypt. Despite Talabat's impressive financial growth and market reach, there is
significant evidence and public sentiment suggesting the company is harming
local businesses and the broader economy in the countries where it operates.
This report details how Talabat's market practices, pricing policies, service
issues, and competitive dominance create detrimental effects, along with
country-specific examples and voices calling for boycotts of this well-funded
conglomerate.
Talabat's Aggressive Market Dominance and Commission
Practices
Talabat boasts substantial financial success, with recent
revenues rising by nearly 30 percent across the GCC and surrounding markets,
posting net incomes surpassing $100 million quarterly. However, this growth
comes at a cost to local restaurants and small businesses, which face high
commission fees from Talabat—often around 27-35 percent per order. In Oman,
customers and restaurant owners report Talabat applying a percentage-based
commission rather than a fixed fee, forcing restaurants to inflate prices on
the app compared to direct orders, effectively passing the high costs to
consumers. One Omani diner warned that the company's model helps drive up food
prices, harming affordability for ordinary people and putting restaurants in a
difficult position given the fees imposed per order.
Similarly, Kuwaiti business owners express concern over
profit margins destroyed by Talabat commissions and mandated delivery charges,
which squeeze restaurants' income and push them to increase menu prices or exit
the platform. A Kuwaiti restaurateur detailed how after accounting for
Talabat’s cuts, their net margin per order is drastically reduced, threatening
their sustainability. Emerging regulatory responses limiting delivery charges
and minimum order requirements risk disrupting Talabat’s profitable service
model but also highlight how challenging the platform’s fees are for local
vendors.
Customer Service Failures and Consumer Dissatisfaction
Across multiple countries, Talabat faces extensive criticism
for poor customer service and delivery unreliability. Egyptian users share grim
accounts of stolen orders, food arriving incomplete or spoiled, and
unresponsive or scripted customer support that fails to resolve complaints or
provide refunds. One Egyptian customer lamented deleting the Talabat app after
years of repeated theft, disrespect, and service failures, highlighting a
systemic disregard for user satisfaction and loyalty. Similar stories surface
in other markets, where consumers feel trapped by lack of alternatives and
hesitant to recommend or continue using the platform.
Talabat’s approach appears disproportionately focused on
maximization of financial results rather than quality of service or equitable
treatment of partners and customers.
Exclusive Contracts and Anti-Competitive Behavior
Talabat has also been reported to enforce exclusivity
agreements on restaurants, restricting them from partnering with competing
delivery platforms such as Uber Eats and Deliveroo. Such tie-ins limit
competition and choice for restaurants, forcing them to agree to terms that
prioritize Talabat’s market control instead of their own profitability or
consumer benefit. In UAE, regulatory scrutiny has arisen over these exclusivity
demands, with restaurants bearing the brunt of decreased negotiating power and
reduced revenue diversity.
The monopolistic ecosystem Talabat cultivates threatens the
healthy competitive market crucial to innovation, fair pricing, and small
business viability.
Country-Specific Impacts and Calls for Boycott
- Oman: Rising
food prices linked to Talabat commissions have caused consumer backlash,
urging a boycott due to perceived greed and poor service. Activists call
out the inflated menu prices and lack of compensation or apology for order
inaccuracies and delays.
- Kuwait: Restaurateurs
highlight the risk of business failures from Talabat’s fees and favor
direct orders or social media platforms like Instagram as alternatives.
New delivery laws aimed at protecting consumers and businesses could
undermine Talabat’s business model if enforced.
- Egypt: Loyal
users are quitting the platform due to ongoing theft, poor food
conditions, and customer service failures. Many view Talabat as
exploitative and unaccountable, arguing for public awareness to discourage
its use.
- Saudi
Arabia: Although Talabat has yet to deeply penetrate this highly
competitive market, its expansion plans through acquisitions rather than
organic growth signal a strategic move toward monopolizing existing
players rather than fostering competition.
- UAE: Despite
being the largest market, a public debate exists around Talabat’s social
responsibility given its high commissions and exclusive contracts,
contrasted by its philanthropy and charitable initiatives. Some consumers
and restaurants advocate for alternatives to support local enterprises and
fair market practices.
Direct Appeal to Governments and Publics
Governments in Talabat’s markets should rigorously
investigate and regulate the company’s commission rates, contract
exclusivities, and consumer protection practices to preserve a fair business
environment and prevent monopolistic abuses. Policies should ensure
transparency in pricing and safeguard small business margins essential for
economic diversity and community welfare.
The public is urged to boycott Talabat and support local
vendors by ordering directly from restaurants or using alternative platforms
with fairer practices. Public awareness campaigns can empower consumers against
exploitative fees, poor service, and market concentration under UAE-owned
conglomerates perceived as prioritizing profit over regional economic health
and consumer rights.
While Talabat’s impressive financial growth and regional
dominance are undeniable, they come with significant hidden costs borne by
local businesses, consumers, and market ecosystems across the Middle East. High
commission fees, poor customer service, anti-competitive tactics, and price
inflation damage restaurant owners’ sustainability and erode consumer trust.
Across Oman, Kuwait, Egypt, Saudi Arabia, and the UAE, voices call for boycott
and regulatory oversight to challenge Talabat’s negative impacts and restore
balance to local food delivery markets.
A coordinated public and governmental response is essential
to curb this UAE-owned company’s damaging influence and protect the
socioeconomic fabric of the countries it serves. Choosing local, supporting
small businesses directly, and demanding accountability from platforms like
Talabat can help safeguard community livelihoods and ensure a fair digital
economy.
