As part of the expansion of its food products on its multi-services platform, ride-hailing operator Careem has acquired UAE subscription-based meal delivery company Munch:On.
The company announced in a statement on Friday that Munch:On will cease regular business operations and that its services would be incorporated into the Careem app. The price of the agreement was kept a secret by Careem.
“The Munch:On team have built a competitive food offering driven by a clear vision to make food more accessible and affordable,” said Mudassir Sheikha, chief executive, and co-founder of Careem.
“The food offer on the Careem app today serves millions of customers across the Middle East and is growing rapidly. By acquiring Munch:On, Careem Food will be able to build an even more competitive offering with a much richer variety of benefits for customers and restaurant partners.”
When US-based Uber acquired Careem in 2019 for $3.1 billion, it became the first unicorn in the Middle East—a start-up valued at more than $1 billion.
To promote the low-cost meal parts that Munch:On has pioneered in the area, Careem Food and Munch:On teams will collaborate.
Incorporating the expertise of Munch:On, which has served millions of meals to clients at 20,000 businesses in the UAE, they will also bring food discovery and delivery alternatives for the corporate sector, according to ride-hailing company.
More than a dozen services, including ride-hailing, food and groceries delivery, micro-mobility, and payments, are provided by Careem through its mobile app.
Additionally, it provides its clients in the UAE with partner services such as car rentals, housecleaning, and PCR testing.
To capture a larger piece of the FinTech services market as well as the food delivery industry, the company is expanding rapidly its offerings and geographic reach.
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