Careem CEO says 90% of transactions in MENA region are still by cash

In an interview with CNN Anchor and Correspondent, Julia Chatterley, Careem CEO, Mudassir Sheikha spoke about the effect that the region’s largely cash-based economy has had on the growth of the business; and how the company has taken advantage of low credit card penetration to develop a unique selling point for Careem.

With 35 million customers, the app will extend from ride hailing, delivery service, bicycle sharing, bus transportation to financial services and beyond. CNN hears that the consumer spend in the region is $1.8 trillion and only 2% is spent online to date. Being the only large-scale digital player in the region, the app has the potential to grow larger than a digital bank to a multi-service consumer opportunity.

Despite the funding environment globally and in the region, Careem are set on sustain growth through offering a variety of services on one app, boosting the engagement and time spent on one platform. This opens up a massive opportunity for the homegrown company, that recently entered into a $3 billion deal with Uber.

Speaking on First Move with Julia Chatterley, Sheikha, said: “Credit card penetration in the region is very, very low, and if you look at just our own data, we do 90% of all daily transactions in cash. However, we’ve been able to overcome some of the shortage, or you know, lack of payment options, and the frustrations that we have had, and are now packaging this up into something that we can offer other businesses.”

“In the form of a super app, we allow other businesses in the region to leverage the payment capability that we have built, and able to convert cash, collected by our drivers in the region, into additional payments that can be used for purchases online, on digital platforms. So that is the first step of what we’re doing with Careem pay.”

Text and image source: CNN.