Uber subsidiary Careem is launching a rapid grocery delivery service in Dubai, United Arab Emirates by tapping the fast-growing dark store sector, according to a Thursday (Dec. 9) CNBC report.
These dark stores combine warehouse infrastructure with a supermarket concept that isn’t open to the public, but are open to online ordering and delivery services.
“Our true competitor is the offline supermarket,” Chase Lario, head of grocery at Careem, told CNBC. “That’s where the majority of customers are spending their time. Grocery is one of the few industries that’s not radically changed from a customer perspective in the last hundred years.”
Lario added that the company is striving to “radically simplify the way people are shopping for their groceries.”
See also: Dubai’s Careem Introduces Commission-Free Model For UAE Restaurants
Careem is planning to provide its rapid grocery delivery service, Careem Quik, to close to 50% of Dubai by the end of 2021 and the whole city in 2022. Next year, the company is planning 100 stores across the UAE and Saudi Arabia.
Advertisement: Scroll to Continue
The company is also planning to utilize its partnership with the U.S. robotic sidewalk delivery start-up Kiwibot and automate the rapid delivery process.
“Part of the beauty of the dark stores is they’re relatively simple in their requirements,” Lario told CNBC. “Fridges, freezers and shelves and some basic fixtures, which is what allows them to be so efficient. You’re talking about 10 times the amount of revenue per square foot than a traditional supermarket. And fortunately, everything we’ve needed has been readily available.”
Read more: Tabby Remains Independent Amid Increasing Consolidation in MENA BNPL Space
Careem already offers grocery delivery through its app, but delivery times are usually above one hour. With Careem Quik, the company controls the supply chain and has more say over prices and inventory. The company’s goal is to deliver in 15 minutes.
The grocery market in the Middle East and North Africa is estimated at $0.4-0.5 trillion, Careem said, and it anticipates that the online grocery market will generate at least $11 billion by 2025.
