Careem NOW: A new delivery service on your block

Middle East ride-hailing startup Careem has officially launched its delivery business putting it at the forefront with its rival, Uber Technologies. 

The company is planning on spending $150 million on their delivery business, kicking off with food delivery in Dubai and Jeddah, called Careem Now. The company also plans on expanding to pharmaceuticals. 

Mudassir Sheikha, Co-Founder, and CEO of Careem, commented on the launch saying: “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. The CEO promises that Egypt and Pakistan are next for Careem, and that “very soon the rest of the footprint will follow.” 

Careem has already tested out the food delivery ever since it acquired Roundmenu, the online restaurant listing platform back in February.

Careem NOW will have a separate app dedicated for its delivery business.  They’re also building a call center of their own for Careem NOW. 

In case you’re wondering who’s the Managing Director, it’s Adeeb Warsi, who joined the company in 2017 with more than seven years worth of experience in Boston’s Consulting Group.

It’s worth noting that Careem has raised over $200 million from existing investors back in October to help with the expansion. According to Sheikha, the company will probably close the deal in the first quarter of 2019, raising $500 million in total, in addition to what was raised in October.