Home Careem and Noon cut fees in bid to disrupt Middle Eastern food delivery
Careem and Noon cut fees in bid to disrupt Middle Eastern food delivery
Moves come as food outlets in the region complain of high commissions from delivery platforms
World Economy News
7 Feb 2021 • 2 min read
Two of the Middle East’s biggest food delivery operators are slashing the high commission costs criticised by struggling restaurants in a bid to disrupt the region’s $3bn market.
Careem, the ride-hailing app acquired by Uber for $3.1bn in 2019, said it would replace percentage-based commission with a new fixed monthly charge for merchants on its application, which spans ride-hailing, food delivery, shopping and bike rental.
Alexander Cornwell
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DUBAI, Feb 4 (Reuters) - Uber’s Middle East business Careem is seeing a slowdown in the recovery of its ride-hailing business due to a new wave of COVID-19 infections, and tentatively forecast business would return to pre-pandemic levels by the end of the year.
The comments represented a more pessimistic outlook from Careem, which said last September it expected its ride service to recover before the end of 2021.
Careem Chief Executive Mudassir Sheikha, giving the year-end forecast for a full recovery, cautioned that circumstances could change.
“That is something that we still think will happen but as you can imagine, it is a pretty volatile situation so we’re just monitoring it closely,” he told Reuters.
2 Min Read
DUBAI (Reuters) - Uber’s Middle East business Careem is seeing a slowdown in the recovery of its ride-hailing business due to a new wave of COVID-19 infections, and tentatively forecast business would return to pre-pandemic levels by the end of the year.
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The comments represented a more pessimistic outlook from Careem, which said last September it expected its ride service to recover before the end of 2021.
Careem Chief Executive Mudassir Sheikha, giving the year-end forecast for a full recovery, cautioned that circumstances could change.
“That is something that we still think will happen but as you can imagine, it is a pretty volatile situation so we’re just monitoring it closely,” he told Reuters.
Careem introduces commission-free model for UAE restaurants
UAE-based super app Careem, has introduced a commission-free model for its restaurant partners in a step to relieve the economic impact of the Covid-19 crisis on UAE- based local eateries according to the company.
The new model replaces the percentage-based commission that food aggregator apps conventionally charge with a monthly subscription fee, a model adopted by UAE-based Chatfood. According to the company’s release on Tuesday, the move comes at a time when restaurants are struggling with high commissions imposed by food aggregators and food delivery apps, which tend to charge commissions as high as 30-35 per cent per order.
2021 will see UAE retail sector pick up speed rohma@khaleejtimes.com Filed on December 31, 2020
Research showed that 9 out of 10 consumers are likely to continue shopping online in the coming years after the pandemic and lockdowns
The GCC s e-commerce sector is expected to hit $50 billion in the next five years
The UAE s retail sector will rally in the new year, with exerts pointing to returning consumer confidence, along with the Expo 2020 Dubai, as the key factors for growth.
Other factors that will contribute to the growth in the sector include the introduction and mass availability of the Covid-19 vaccine, the growing popularity of online shopping, as well as retailers in the region strengthening their omni-channel offerings.