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Careem planning to spend $150 million to launch food delivery business - sources

Reuters  |  DUBAI 

By Alexander Cornwell

(Reuters) - ride-hailing app is planning to spend up to $150 million to launch its business as early as September, according to two sources with direct knowledge of the matter.

Careem, the main rival of , has been trialing services after announcing in February it had acquired regional

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, said one of the sources.

reported in March that was in early talks to raise as much as $500 million from investors.

CareemFood will be launched in as soon as September and then in the United Arab Emirates, Saudi Arabia, other Gulf countries, and Egypt, said a second source.

It will compete against UberEats, Deliveroo, Zomato, and which already operate in the region.

The sources did not say which investors were in talks with.

Careem's investors include German carmaker Daimler, China's largest ride-haling firm DiDi Chuxing, and Saudi Arabian billionaire Alwaleed bin Talal's Kingdom Holding.

There is strong demand for in the Middle East, particularly during the summer months in the Gulf where temperatures can soar above 50 degrees Celsius (122°F) in the summer.

Careem, which says it has 24 million registered users, competes head-to-head with Uber in many cities including Dubai, Riyadh, and

(Reporting by Alexander Cornwell; editing by Jason Neely)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, July 08 2018. 21:04 IST