Careem

Market position

Careem describes itself as the leading everything app in the MENA region and, per its own About page, the Middle East, North Africa and Pakistan's biggest tech startup success story to date; its $3.1 billion sale to Uber was the region's largest technology exit and made it the first unicorn in the Middle East outside Israel. In Saudi Arabia in May 2017, women accounted for 80% of its customers.

Regional focus and localisation for MENAP markets, where Careem built the underlying location and cash-payment infrastructure itself; a broad multi-service bundle (rides, taxi, bikes, food, groceries, electronics, pharmacy, home services, remittances) within one app; the Captain model with training, rewards and welfare programmes; and dual backing from Uber and telecom investor e&.

Technology

A single consumer super app spanning mobility, delivery, commerce and payments, with real-time ride tracking and map-based Captain tracking, 15-minute grocery fulfilment through Careem Quik dark stores, a digital wallet and cross-border payment rails, and 24/7 in-app, web and phone support. Because regional infrastructure was immature at launch, the company built its own location/address databases and cash-handling flows rather than relying on existing mapping and card-payment systems. Engineering is carried out across five technology sites in Europe and the MENAP region.

Go-to-market

Direct-to-consumer distribution through the Careem mobile app (over 50 million Android downloads) and website, city-by-city launches across MENAP markets, driver/Captain recruitment with training and rewards programmes, merchant partnerships with international and local restaurant and retail brands, promotional discounts and the Careem Plus loyalty membership. Partnerships have also been used to enter new categories, including Lulu Exchange for the UAE-Pakistan remittance corridor and the Roads & Transport Authority for Careem Bike, and Uber Eats transferred its UAE operations to Careem in 2020.

Urban consumers in the Middle East, North Africa and Pakistan needing transport, food, groceries, everyday errands, home services and cross-border money transfers, alongside drivers and couriers seeking flexible earnings and merchants seeking demand and delivery capacity.

Geography

Headquartered in Dubai, UAE (Shatha Tower, Dubai Internet City). Operations in over 70 cities across 10 countries from Morocco to Pakistan; the app cites service in the UAE, Saudi Arabia, Jordan, Egypt, Iraq, Kuwait, Morocco and Bahrain, with rides in 80 cities. Historic launches include Palestine (2017) and Baghdad, Najaf and Erbil in Iraq (2018), and Careem Bike operates in Dubai (192 docking stations by 2023) and Medina (165 bicycle and scooter stations). Engineering sites span Europe and MENAP.

History

Careem started in 2012 as a website for corporate car bookings and became a ride-hailing company. It raised $1.7 million of seed funding led by STC Ventures in 2013 and a $10 million Series B in 2014 led by Al Tayyar Travel Group and STC Ventures. In January 2015 it acquired enwani, a Saudi-based delivery service operator, and Abdulla Elyas joined as co-founder. A $60 million Series C led by The Abraaj Group followed in November 2015. In February 2016 taxi drivers in Egypt protested against Uber and Careem operating without taxi licences, prompting government regulation, and in October 2016 Dubai regulators required Careem to allow booking of all Dubai taxis and limousines through its app. In December 2016 it raised $350 million in a Series D at a $1 billion valuation, with Saudi Telecom Company taking a 10% stake. A $150 million Series E followed in June 2017 at a $1 billion valuation with Kingdom Holding Company, Mercedes-Benz Group, Lumia Capital, DCM Ventures and Coatue Management, and Abraaj sold its stake to Kingdom Holding. DiDi invested and entered a technology partnership in August 2017. In January 2018 Careem became the first ride-hailing service to launch in Baghdad and began recruiting women drivers in Saudi Arabia ahead of the June 2018 legalisation of women driving. February 2018 brought the acquisition of RoundMenu and a $200 million raise at a $2 billion valuation, followed by a further $200 million from existing investors in October 2018. Careem Now food and pharmacy delivery launched in November 2018, bus booking in Egypt in December 2018 (discontinued in early 2020), and Careem Bike followed the May 2019 acquisition of UAE bike-sharing startup Cyacle. Uber's $3.1 billion acquisition closed in January 2020; the company then began grocery delivery in Dubai in April 2020, cut 536 jobs (31% of staff) in May 2020 during the COVID-19 pandemic, took over Uber Eats' UAE operations, and launched Careem Quik in December 2020 and Careem Pay in April 2022. Over its first decade the founders expanded into 14 countries and hired more than 12,000 colleagues.

Risks & controversies

In January 2018 Careem discovered a data breach affecting more than 14 million riders and 558,800 drivers but did not disclose it until late April 2018, saying it wanted accurate information before notifying people; the company found no initial evidence of fraud or misuse, and it was alleged Careem had been notified of the vulnerability more than a year earlier without acting. Regulatory friction has included Egyptian taxi driver protests and sit-ins in February 2016 demanding Uber and Careem be blocked for operating without taxi licences, and a 2016 Dubai requirement that the app carry all local taxis and limousines. The COVID-19 pandemic cut the business by roughly 90% and led to 536 layoffs (31% of the workforce) in May 2020, and the Egypt bus service was discontinued in early 2020. Google Play reviews cite billing errors, cancellation-fee disputes and unresolved support cases.