Careem’s delivery service sees sizeable growth in H1

Dubai - Most Careem Delivery customers use it to send items, but the percentage of ‘buy’ orders has been increasing month-on-month from February 2021

Biryani, laptops, and a face mask, at first glance none of these items have anything in common, however Careem Captains will tell you that they are some of the most requested items that residents across Dubai have asked for since the beginning of this year.

In its latest report, Careem highlighted some of the key trends that they company observed in its buy and send ‘Careem Delivery’ service. Careem Delivery has seen constant month-on-month growth since the beginning of 2021, with 30 per cent growth year-to-date. In addition, the findings showed that 33.7 per cent of active Careem customers were using the delivery feature on the app, with most of them sending items within the emirate of Dubai.

Currently, the delivery service is being used primarily to send items, with 78.9 per cent of Careem Delivery customers either sending or collecting items from across Dubai. However, since February, the number of ‘buy’ orders has also increased steadily month-on-month, with a total of 21.1 per cent of delivery customers asking Careem Captains to purchase items on their behalf.

Speaking to Khaleej Times in an exclusive interview to discuss the results of the report, Bassel Al Nahlaoui, managing director of Mobility at Careem, said that he was surprised about the growth of the delivery business, and “how organic it’s been.”

“We really haven't done much to promote delivery or build awareness, and the strong growth is really a testament to product market fit and how useful customers are finding the services,” he said. “We believe that once a customer experiences how convenient this type of service can be, they’re likely to use it again and tell their friends about it.”

Customers choosing to use the service for purchasing is really about awareness, he added. “A lot of people who use Careem regularly don’t know that a Captain will go to a store, buy something, and deliver it to them even if that store isn’t listed on our app. Early on we needed to work out some kinks in our system around payments and training Captains to make sure the service was seamless, and at the high standard our customers expect, but now we think growth will come as more people become aware of the convenient option to skip a trip to the store.”

This year, the app’s most sent or collected items are bags, documents, and laptops which is in line with many residents no longer working their full 40-hour weeks in an office setting. Food, specifically biryani and bakso, and face masks using the ‘buy’ tool are the top purchased items. The demand for these items highlights the needs throughout the pandemic and the change to consumer shopping patterns. With Careem Delivery, customers are not limited to the restaurants and shops partnered with apps, they can order from their favourite spots, no matter how big or small.

The top drop-off zones to send items include Dubai Marina, Palm Jumeirah, Downtown Dubai, Business Bay, and Jumeirah Village Circle, making up 24.1 per cent of all delivery orders. On the other hand, Jumeirah Lakes Towers, Business Bay, Dubai Marina, Deira, and Jumeirah Village Circle represent the top pick-up zones, making up for 26 per cent of all delivery orders.

Careem Delivery has a starting fare of Dh8 and offers two options through the Careem Super App; the first is ‘Pick & Drop’, where Captains will be able to pick up anything that fits in a 50x50x50cm box and weighs a maximum of 10kg and have it delivered at the provided location. The second option is called ‘Shop & Drop’, where Captains will shop for any item on the customer’s behalf, with the amount limited to Dh350. A comment option is also available for the customer to communicate with the Captain and list the items to be purchased.

rohma@khaleejtimes.com