Careem, a popular ride-hailing app in the Middle-East, is now entering the delivery business. In an attempt to seek new verticals to give it added leverage in its ongoing fight with rival services, Careem has started with food delivery in Abu Dhabi and Jeddah.
The service called Careem Now is expected to expand to other services in the future, including the delivery of pharmaceuticals. The company is reported to be investing more than $150 million into the new service.
“We believe the opportunity for deliveries in the region is even bigger than ride-hailing,” said Chief Executive and co-founder Mudassir Sheikha. “It is going to become a very significant part of Careem over time.”
Careem Now is expected to operate independently from its ride-hailing business and will have its own app and the company is building the service as a dedicated call center. The launch of the new app comes even as the company is trying to close a $500 million funding round.
Back in October, it announced it had already raised $200 million from existing investors. Prior to this announcement, rumors were swirling that several companies, including Didi Chuxing, the Chinese ride-sharing, artificial intelligence and autonomous technology conglomerate, was planning on acquiring Careem.