Careem NOW - Photo credit: Careem
The food delivery market is gaining traction across the Middle East, as a number of players race to leverage huge demand from a fast-growing customer base.
According to ride-hailing company, Careem, the food delivery market is predicted to grow to around $25 billion by 2022.
This comes as food delivery apps multiply, with the major companies currently leading the market being Uber Eats, Deliveroo, Zomato, Talabat and lately Careem NOW.
“Only 15% of the food delivery market in our region currently operates via app,” said Adeeb Warsi, Managing Director of Careem NOW.
Careem launched its online delivery platform for goods and services a few months ago. It began operations in Jeddah and Dubai, and has recently added Riyadh. Careem NOW will also be launched in Karachi, Pakistan and Amman, Jordan in the coming months.
Uber already has a growing market share since it launched Uber Eats in 2015. Uber Eats is set to deliver some $10 billion worth of food worldwide this year, up from an estimated $6 billion-plus last year, according to CEO, Dara Khosrowshahi.
The UAE is expected to continue leading the food and beverage market in the Middle East, fueled by a growing number of tourists and the entry of new international and regional brands, according to recent research by KPMG.
Last month, food ordering and delivery platform Zomato sold its UAE business to German e-commerce giant Delivery Hero, which also owns its Middle Eastern rival Talabat, for $172 million.