Dubai's Careem said to plan $150m spend on food delivery launch

Careem has been trialing food delivery services after announcing in February it had acquired regional online restaurant listing platform RoundMenu
Dubai's Careem said to plan $150m spend on food delivery launch
By Staff writer
Tue 10 Jul 2018 01:58 PM

Dubai-based ride-hailing app Careem is reportedly planning to spend up to $150 million to launch its food delivery business.

Reuters, citing two sources with direct knowledge of the matter, said the launch could happen as early as September.

Careem has been trialing food delivery services after announcing in February it had acquired regional online restaurant listing platform RoundMenu, Reuters said.

It quoted sources as saying that the company is in talks with investors to raise as much as $150 million to finance the launch of CareemFood.

Reuters reported that CareemFood will be launched in Pakistan as soon as September and then in the UAE, Saudi Arabia, other Gulf countries, and Egypt.

Careem, which says it has 24 million registered users, competes with Uber in many major Middle East cities including Dubai, Riyadh, and Cairo.

Reports earlier this month suggested Uber and Careem are in preliminary talks to combine their Middle Eastern ride-hailing services.

Careem, whose backers include Japanese e-commerce giant Rakuten and German automaker Daimler, was valued at a little more than $1 billion in a 2016 funding round, making it one of the most valuable technology startups in the Middle East.

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