Careem, a Dubai-based ride-hailing company, is reportedly planning to invest AED 550.97 million ($150 million) in its food delivery unit, which is projected to be launched next September, informed sources said.
In February, Uber’s regional rival announced the acquisition of RoundMenu, a food delivery and reservation website.
“The Dubai-based company is in talks with investors to raise as much as $150 million to finance the launch of CareemFood as part of an existing fundraising round,” Reuters reported, citing one of the sources as saying.
CareemFood is planned to be launched in Pakistan in September and expand later in the UAE, Saudi Arabia, and Egypt – along with other GCC countries.
Careem’s new business will enter in a regional competition with UberEats, Deliveroo, Zomato, and Talabat, which provide similar services.