Careem said to raise $150m to start food delivery business in the Middle East
By Reuters / The National
Reuters reported in March that Careem was in early talks to raise as much as $500m from investors.
CareemFood will be launched in Pakistan as soon as September and then in the UAE, Saudi Arabia, other Gulf countries, and Egypt, said a second source.
It will compete against UberEats, Deliveroo, Zomato, and Talabat which already operate in the region.
The sources did not say which investors Careem were in talks with.
Careem’s investors include German carmaker Daimler, China’s largest ride-haling firm DiDi Chuxing, and Saudi Arabian billionaire Prince Alwaleed bin Talal’s Kingdom Holding.
There is strong demand for food delivery in the Middle East, particularly during the summer months in the Gulf where temperatures can soar above 50 degrees Celsius in the summer.
Careem, which says it has 24 million registered users, competes head-to-head with Uber in many major Middle East cities including Dubai, Riyadh, and Cairo.