Uber’s Middle East unit Careem sees recovery after 80% slump

Careem’s ride-hailing business started to recover as governments in the Middle East began easing transportation restrictions following weeks of lockdown due to the coronavirus pandemic.

Business is still down 50 per cent to 60 per cent from last year but has recovered from a slump of more than 80 per cent in March and April, chief executive officer Mudassir Sheikha said to Bloomberg TV on Tuesday.

“We have started to see recovery since early May, and business has been growing week-on-week double digit.”

The company’s delivery business has “become much larger” during the crisis, Mudassir said.

The CEO also said:

• Careem ruled out further job cuts after reducing staff by 31 per cent in May.
• The company plans to launch a super app this month as it moves to become an everyday app, rather than a ride-hailing app.
• Careem didn’t have to raise capital as it’s fully backed by Uber Technologies Inc.