Talabat resumes services in Qatar after suspension for 'misleading consumers'

Food delivery company talabat said on Monday that it has resumed services in Qatar after it was temporarily suspended last week by the Ministry of Commerce and Industry for providing "false and misleading" information to customers.

The company, which was subject to a "temporary administrative closure" from September 10, has worked closely with authorities throughout the process and implemented internal measures and product enhancements, it said in a statement to the Dubai Financial Market, where its shares trade.

Talabat has assessed the direct financial impact of the temporary closure and determined it to be immaterial, it said. It will continue to monitor and evaluate any potential indirect financial implications that may arise over time.

"Talabat remains committed to supporting its customers, partners and riders, and is proactively working to address any impacts from this temporary disruption of service," it added.

Qatar's Ministry of Commerce and Industry had ordered the platform's closure for a week after finding the company in violation of the law on consumer protection and its executive regulations.

"The decision was made due to repeated violations and multiple substantiated complaints against the company, including the display or description of goods with false or misleading information, which deceived consumers and unlawfully obtained their money, as well as failure to provide guaranteed service," the ministry said last week.

The practices "constitute an infringement of consumer rights", it added.

The ministry said the move was part of its continuing efforts to strengthen market oversight and ensure regulatory compliance by service providers. It stressed that it will not tolerate any violations that may harm consumer rights or negatively affect the business environment in the country.

Founded in 2004, talabat offers on-demand delivery of food, groceries, and other products from restaurants and retailers in the UAE, Kuwait, Qatar, Egypt, Bahrain, Oman, Jordan and Iraq.

A subsidiary of Germany's food delivery platform Delivery Hero, talabat raised Dh7.5 billion ($2.04 billion) through its initial public offering on the DFM in December. In March, talabat also completed the acquisition of Dubai-based grocery platform instashop from Delivery Hero for $32 million under a common control transaction.

Talabat reported 35 per cent revenue growth annually in the second quarter to $982 million, with net income up 33 per cent to $119 million. Gross merchandise value (GMV), a key metric which refers to the total value of good sold through the platform, grew 32 per cent annually in the April to June period to reach $2.4 million. The results came on the back of double-digit growth in its core Gulf market and food vertical, and faster growth in non-Gulf markets, talabat said.