Careem sees recovery in Middle East business after 80% slump due to coronavirus – CEO

Careem Inc.’s ride-hailing business is seeing a recovery as governments in the Middle East began easing transportation restrictions following weeks of lockdown due to the coronavirus pandemic, its chief executive Mudassir Sheikha told Bloomberg TV on Tuesday.

Business is still down 50 percent to 60 percent from last year but has recovered from a slump of more than 80 percent in March and April, Sheikha said.

“We have started to see recovery since early May, and business has been growing week-on-week double digit.” Careem’s CEO told Bloomberg TV.

Careem’s delivery business has “become much larger” during the crisis, Mudassir added.

According to Mudassir, the company has ruled out further job cuts after reducing staff by 31 percent in May.

It also plans to launch a super app within this month as it moves to become an everyday app, rather than a ride-hailing app, he added.

Careem did not have to raise capital as it is fully backed by Uber Technologies Inc, Mudassir said.

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