The transportation network company, Careem, recently started a delivery service that will provide services from food to pharmaceuticals. This pushes Careem out of just their ride-hailing business and continuing to compete against their main rival, Uber.
The company has expanded its car service business to more than 120 cities in 15 predominantly Middle East countries since launching in 2012.
“We believe the opportunity for deliveries in the region is even bigger than ride-hailing,” Chief Executive and Co-Founder Mudassir Sheikha told Reuters at Careem’s headquarters in Dubai. “It is going to become a very significant part of Careem over time.”
It plans to spend over $150 million developing the delivery business, starting with food delivery services in Dubai and Jeddah.
“Once you see us prove the model in the UAE (United Arab Emirates) and Saudi (Arabia), you will see us very quickly go to new markets,” Sheikha said. “Egypt and Pakistan will come next and then very soon the rest of the footprint will follow.”
Careem, whose investors include German car maker Daimler and China’s largest ride-hailing company DiDi Chuxing, has trialled food delivery since acquiring an online restaurant listing platform in February. It also offers digital payment services.
The Careem NOW delivery service is a separate app to the car service and will be operated independently to the core business with Adeeb Warsi appointed as managing director. Warsi joined Careem in 2017 after more than seven years with the Boston Consulting Group, according to his LinkedIn profile.
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