Dubai: Uber Eats has decided to club is services into Careem’s food delivery operations, and relying on the locally created brand to expand its reach in the hugely competitive food delivery business.
It was in October last year that Careem Now was rolled out.
“We’ve made the tough but necessary decision to close the Uber Eats app in UAE,” said a spokesperson. “We believe Careem is better placed to serve our food delivery communities as it expands its app across the region.”
Uber Eats was launched in 2017. Market sources say that transferring its food delivery ambitions into Careem NOW would make better sense cost-wise in the long run.
Moreover, both brands have until now cater to more or less the same demographic user base, and that being the case, it would be better going forward with a single brand, marketing sources add.
Apart from the UAE, Uber Eats also decided to drop out of the food delivery sweepstakes in Saudi Arabia and Egypt.
Focus on the rides
The move also allows Uber to focus on its core services through the ride-hailing app. These markets as well as Europe will remain a focus area for higher growth possibilities, as usage limps back to normal once the virus worries die down.
