Careem reduces its commission to 5% in support of the restaurant industry

Careem, the Super App of the greater Middle East and Pakistan has announced to slash its restaurant commission fees to 5% with the second wave of COVID-19 hitting Pakistan and the closure of indoor dine-in. This announcement was made on Careem’s social media assets encouraging people to order more.

The reduction in commission fees will allow Careem to extend the necessary support to restaurants by passing down these commissions in form of discounts to customers, while encouraging increased orders. During the first lockdown, the restaurant industry had taken a severe economic hit due to pandemic impacting millions of lives, as dine-in was completely shut. However things are still challenging as now new SOPs require reduced timing with a complete ban on in-door dining.

Speaking on the development, Zeeshan Hasib Baig, CEO & Country General Manager, Careem Pakistan said: “At Careem, we always work to best assist our partners, customers and captains during these uncertain times. Being a key player in the industry, it is our duty to act as the supporting force behind our communities and vendors to ensure business sustainability. The initiative of slashing commission rates is to ensure that the industry does not suffer. Hence, we urge everyone to order as much as they can- be it direct delivery from restaurants or any delivery app of their choice .”

The All Pakistan Restaurants Association (APRA) has also commended the decision taken by Careem Pakistan in an expectation that the slashed commission would be passed on to the customers in form of lower prices and discounts. Babar Nehal, Chairman APRA stated “We would like to thank Careem for coming forward in support of the industry in these extremely challenging times, I would urge all restaurants to come forward and pass on discounts to customers.”

The prominent restaurant partners such as Tooso, Espresso, Tao, Coffee Wagera, Kaybees, Big Bash, Pan Asia, and The Patio have come forward and shown their support to the decision by expressing their challenges and commitment to overcome them.

Earlier this year, Zeeshan Baig wrote an open letter to the restaurant industry addressing key challenges faced by them as they were one of the worst affected industries of the COVID. The letter also highlighted some key proposals by Careem such as flexibility in self delivery, no exclusivity, lower commissions and special packages for APRA members.

Careem launched its food delivery service in Pakistan by launching in Karachi in 2019 and Lahore in October 2020. However, with the food industry being impacted by COVID has had its implications on growth. Being relatively newer entrants in the food market, Careem is dedicated to not only grow but also to safeguard the interest of its restaurant partners.

Since Careem launched its operations in Pakistan in 2016, our purpose has always been to build an app that remains a constant source of positive impact and prosperity for the people in Pakistan by simplifying lives, creating job opportunities and enabling our partners to grow.

Careem recently became a Super App and has more than 600,000 Captains registered on its platform so far. Transforming into a Super App; Careem offers multiple opportunities as it expands its services from mobility of people to adding mobility of things as well as mobility of money including food, daily essential deliveries, peer to peer credit transfer and mobile top-ups.