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Careem logo
Uber’s Middle East business, Careem, is seeing a slowdown in the recovery of its ride-hailing business due to the second wave of COVID-19 infections, and tentatively forecast business would return to pre-pandemic levels by the end of the year, Reuters reported.
“That is something we still think will happen, but as you can imagine, it is a pretty volatile situation, so we are just monitoring it closely," Careem chief executive Mudassir Sheikha said.
While demand had slowed of late, the ride-hailing business was nine times larger than at its lowest point last year - although still below pre-pandemic levels, Sheikha added.
The company will charge restaurants a monthly fee for delivery services, instead of commission on each order, which is the standard practice in the industry. This is expected to drive more restaurants and users to the app, Sheikha noted.
“What we might lose in margins in the short to mid-term, we will definitely make it up in volumes over time,” the CEO concluded.
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