Careem set to enter food delivery business in Dubai

CareemFood will potentially launch operations by September.
CareemFood, Ride hailing app, Uber, Last mile, Dubai

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Dubai-based Careem is set to take on the likes of Deliveroo and Uber Eats with the launch of its own food delivery service according to reports by Reuters.

The news agency has heard from two sources within the ride-hailing company that Careem is trying to raise up to US $150 million to launch the service.

CareemFood will potentially launch operations by September.

Careem has been undergoing trials since February, when they purchased RoundMenu, using their fleet of drivers to not only ferry passengers but also food orders, in much the same was as Uber does with its Uber Eats delivery service.

It comes in the wake of reports from Bloomberg that Uber has opened talks to buy a controlling stake in Careem, their biggest rivals in the Middle Eastern ride-hailing market.

The developments come months after Careem launched an e-commerce arm called Dukkan Careem, which claimed to be able to provide delivery within the hour in the UAE.

Last mile fulfilment is carried out by Careem, reportedly within an hour of a purchase being made. But tests of the service by Logistics Middle East resulted in a two day delivery window.

CareemFood will utilise the existing Careem fleet in the same way, ferrying people as well as food.