Careem, the UAE-based everything app, has announced a significant expansion of its delivery services with the launch of ‘Box XL’ in Dubai. This new car-based service is designed to transport larger items, complementing the existing motorbike-based ‘Box’ service and further solidifying Careem’s position in the region’s competitive last-mile logistics market.
Strategic Expansion into Larger Logistics
The launch of Box XL addresses a clear gap in the market for the on-demand delivery of items too large for a standard delivery bike. The new service utilizes cars from Careem’s extensive fleet to transport goods weighing up to 20kg. This move allows Careem to handle a wider variety of items, from large food orders and groceries to important documents, parcels, and other bulky goods that require more space and careful handling.
“We are thrilled to expand our delivery services with Box XL,” said Jaskaran Singh, VP of Food at Careem. “Our mission is to simplify people’s lives, and by introducing a car-based delivery option for larger items, we’re providing our customers with a convenient and reliable solution for all their delivery needs, all within the Careem everything app.”
Serving a Broader Market
Box XL is tailored for both individual customers and small and medium-sized enterprises (SMEs). For individuals, it offers a convenient solution for moving items that won’t fit on a motorbike, such as large shopping bags, household items, or personal effects across the city. For businesses, particularly in the burgeoning e-commerce space, Box XL provides a reliable and trackable delivery partner for fulfilling customer orders that involve larger products, enhancing their business-to-consumer (B2C) and consumer-to-consumer (C2C) logistics capabilities without the need for their own fleet.
Pricing and User Experience
The new service is integrated seamlessly into the Careem app, maintaining the user-friendly experience the platform is known for. Pricing for a Box XL delivery is distance-based, with fares starting at a competitive AED 24. Customers can easily book a delivery, select the ‘Box XL’ option, and track their package in real-time from the moment of pickup to its final drop-off, ensuring transparency and peace of mind throughout the process.
About Careem
Since its founding in Dubai in 2012, Careem has evolved from a pioneering ride-hailing service into a comprehensive “everything app” serving millions of users across the Middle East, North Africa, and Pakistan. Acquired by Uber in 2020, Careem continues to operate independently, offering a wide range of services on its platform, including ride-hailing, food and grocery delivery, digital payments, and now an expanded suite of on-demand delivery solutions.
Looking Ahead
The introduction of Box XL is a shrewd strategic move that deepens Careem’s capabilities in the lucrative delivery vertical. By leveraging its existing network of car Captains and technology infrastructure, the company can efficiently scale this service to compete more directly with traditional courier companies and specialized logistics startups. This expansion not only enhances the value proposition of the Careem super app but also opens up a significant new revenue stream from the growing B2C e-commerce and C2C delivery markets in the UAE, with potential for rollout to other key markets in the future.
Source: Zawya
