Technology

Careem reduces its commission to 5% for restaurant industry

Careem wants to pass down these commissions in form of discounts to customers while encouraging increased orders

Tech Desk December 14, 2020

An employee shows the logo of ride-hailing company Careem on his mobile in his office in the West Bank city of Ramallah July 17, 2017. PHOTO: REUTERS

Careem, announced it will reduce its restaurant commission fee to 5% after government enforced closure of indoor dining as the second wave of Covid-19 hit Pakistan.

Careem food delivery service is reducing its commission fees to support restaurants by passing down these commissions in form of discounts to customers encouraging them to place orders.

When the first lockdown was imposed, the restaurant industry faced severe economic hardship as dine-in was completely shut down. However, not much has changed, restaurants continue to struggle as now new SOPs require reduced timing with a complete ban on in-door dining.

Study reveals where the next pandemic could emerge

Elaborating 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) was pleased with Careem’s decision, “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,” says Babar Nehal, Chairman APRA.

Pakistanis lobby for 'AmazoninPakistan' on Twitter

Restaurants such as Tooso, Espresso, Tao, Coffee Wagera, Kaybees, Big Bash, Pan Asia, and The Patio have also shown support for this decision.

Careem launched its food delivery service in Pakistan by launching in Karachi in 2019 and Lahore in October 2020.