Careem, the region’s leading app-based car service, announced a new research and development (R&D) strategy and plans for global expansion.
Over the next five years, Careem will invest $100 million in R&D, which includes growing its team in the UAE and Pakistan, and opening new R&D centers in Egypt and Germany. The investment will accelerate innovation in transportation-related technology infrastructure for the region and keep Careem at the forefront of this dynamic new industry, a statement from the company said.
“Over the last few years, the region has witnessed a surge in technological innovation and has become home to rapidly growing technology startups,” said Magnus Olsson, co-founder and chief navigator at Careem.
“These startups are using technology to improve the lives of people in the region. Careem is committed to continue innovating to offer the region a safe and reliable transportation option. In order to do that, we have to double-down on R&D, which is why we have announced this investment today.”
A key element of the new R&D strategy involves expanding the company’s engineering footprint in Pakistan. As part of this strategy, Careem and VentureDive – a technology solutions company that creates and invests in technology products and services that simplify and improve lives of people worldwide – have agreed that Careem will acquire a team of 50 VentureDive engineers that helped build the technology stack of Careem.
“We are thrilled to see that a technology team we incubated is being acquired by Careem, a regional institution backed by global investors,” said VentureDive CEO Atif Azim. “This helps validate our mission of creating products of global prominence out of Pakistan, and takes us a step closer to our vision of creating a technology organisation and an entrepreneurial ecosystem in the region that are recognised as second to none in the world.”
Over the last decade, the Middle East has become a strategic hub for organisations with an international presence due to its proximity to emerging markets. Dubai specifically has experienced a massive population growth and was recently listed as one of the five fastest-growing metropolitan areas in the world, by the Brookings Institute. As a result, local institutions have to be able to meet the growing demand for new products and services. The R&D center in Germany will provide Careem access to a global talent pool and booming startup scene to provide its users with a higher level of service and increase awareness of its expanding global presence.
Founded in 2012 by Mudassir Sheikha and Magnus Olsson, ex-McKinsey consultants, and Dr Abdulla Elyas, Careem has experienced more than 30 per cent month-over-month growth since its inception and has expanded across 27 cities in the MENA region and Pakistan. The company currently has 3 million registered users and more than 50,000 captains and is backed by investors Saudi Telecom Ventures, Al Tayyar Travel, The Abraaj Group, Beco Capital, Impulse, Lumia Capital and Wamda Capital.
