Uber’s Middle East Unit Careem Sees Recovery After 80% Slump

(Bloomberg) --

Careem Inc.’s ride-hailing business started to recover as governments in the Middle East began easing transportation restrictions following weeks of lockdown due to the coronavirus pandemic.

Business is still down 50% to 60% from last year but has recovered from a slump of more than 80% in March and April, Chief Executive Officer Mudassir Sheikha to Bloomberg TV on Tuesday. “We have started to see recovery since early May, and business has been growing week-on-week double digit.”

The company’s delivery business has “become much larger” during the crisis, Mudassir said.

CEO also said:

• Careem ruled out further job cuts after reducing staff by 31% in May.
• The company plans to launch a super app this month as it moves to become an everyday app, rather than a ride-hailing app.
• Careem didn’t have to raise capital as it’s fully backed by Uber Technologies Inc.

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