Careem transformed from a UAE-based startup into a global player, demonstrating how local insights can drive international success. Starting in Dubai in 2012, Careem focused on addressing regional needs like cash payments, family-friendly features, and collaboration with local governments. By 2019, Uber acquired Careem for AED 11.4 billion ($3.1 billion), marking a milestone for the Middle East's tech scene.
Key takeaways:
Careem's story inspires UAE startups to think globally while staying rooted in regional realities.
Careem’s journey in the UAE highlights the importance of tailoring services to fit the unique needs of local markets. Instead of imposing a Western business model, the company fine-tuned its offerings to match the preferences and realities of Middle Eastern customers.
Take Egypt, for example. With 90% of transactions being cash-based [5], Careem adjusted its payment system to accommodate this preference. This was a smart move in regions where digital payments hadn't fully taken off, making the service accessible to a broader audience.
Careem also tackled regional challenges like mapping inaccuracies and family-oriented travel habits. By creating its own location database and enabling users to book rides for others, the company addressed both technical and cultural needs [2]. This ensured smoother journeys and reflected local customs, making the service more relatable.
Language and cultural considerations were another priority. Careem’s app supported multiple languages and was designed with local traditions in mind, which helped boost user engagement and loyalty [1]. These thoughtful adjustments set the stage for successful collaborations with regulators and local partners.
Careem didn’t just adapt its services; it also worked closely within local regulatory frameworks, adopting a cooperative approach to establish trust with both authorities and communities.
One notable achievement came in 2015 when Careem partnered with Dubai regulators to ensure all taxis and limousines could be booked through its app [1]. This collaboration enhanced the company’s reputation and simplified regulatory compliance.
Strategic partnerships also played a key role in Careem’s expansion. Instead of investing heavily in infrastructure, the company teamed up with local businesses like Lulu Hypermarket [5]. This approach kept costs manageable, allowed for easier scaling, and fostered strong community relationships.
Mudassir Sheikha, Careem’s CEO, summed up the company’s strategy perfectly:
"There's generally a view that the world is going to adapt to you versus you adapting to the world. In many cases, it happens because there's no substitute: The world adapts to you. But when there are substitutes, there's Careem and others that start in these markets, then we adapt to our customers and that just gives us the edge." [6]
Building on its success in the UAE, Careem crafted a global strategy that addressed the distinct challenges of each new market. Every region presented unique operational hurdles, requiring tailored approaches. To tackle these, Careem empowered local teams to adapt its technology based on specific market needs. As one leader put it:
"We said, 'Let's put this technology in the hands of people who are from those markets, who understand those local realities, and let them use the configuration we've given them'" [6].
For example, adjustments like the introduction of cash payment options - initially developed for the UAE - were further refined for efficiency across multiple regions. These operational tweaks set the stage for addressing deeper cultural and partnership challenges in international markets.
Careem went beyond operational adjustments by addressing local cultural and safety concerns in the markets it entered. Security needs varied significantly from one region to another, prompting unique solutions. In Pakistan, where passenger safety was a major issue, Careem partnered with a security firm that already vetted employees for American consulates. This partnership ensured thorough background checks, including on-site evaluations, to build trust with customers [6].
In Saudi Arabia, where women faced significant barriers to transportation before they were allowed to drive, Careem played a pivotal role in addressing this issue. The company collaborated with the Human Resources Development Fund to launch Wusool, a programme that subsidised commuting costs for working women through the Careem app. Funded by the Ministry of Labour, this initiative not only supported women in the workforce but also aligned with Saudi Arabia's broader economic diversification goals [6].
Careem's expansion strategy relied heavily on forming strategic partnerships to establish credibility and navigate regulatory challenges, rather than building operations independently in every market. Building on its earlier collaborations with Dubai's regulators, Careem extended this approach to environmental initiatives. In 2020, the company launched Careem Bike in partnership with the RTA, contributing to the UAE's goal of cutting emissions by 40% by 2030 [7]. By 2022, Careem Bike had facilitated 2.8 million trips, reducing emissions by 1,926,033 kilograms - the equivalent of taking 600 cars off the road [7].
These partnerships not only brought operational advantages but also provided regulatory support and market validation. By focusing on collaboration rather than ownership, Careem secured an estimated 80% market share in key cities like Dubai and Riyadh [5]. This partnership-driven approach serves as a practical model for startups in the region, highlighting the importance of building strong relationships with governments, local businesses, and community organisations.
Careem has evolved from a simple ride-hailing service into a comprehensive super app, catering to everyday needs and reshaping the digital landscape in the Middle East.
Since its shift to a super app in 2020, Careem has seen its user base grow by an astonishing 900% [9]. By 2024, the platform boasted over 48 million registered users, offering 12 distinct services and generating more than US$500 million in revenue in 2023 [5]. This growth was driven by strategic service integration. For instance, Careem Pay started as an open-loop payment wallet in 2020 and later expanded to include remittance services, connecting users across key corridors like the UK, India, and the Philippines.
Artificial intelligence played a central role in Careem's super app journey. AI-powered chatbots reduced customer service costs by nearly 40% [5], handling routine queries to free up human agents for more complex tasks. AI also supports demand forecasting, fraud prevention, and efficient driver assignment. The platform's tech stack includes cloud computing for real-time data management, machine learning for personalised user experiences, and blockchain for secure payments via Careem Pay. API integration further ensures seamless coordination between services.
With these advancements, Careem has strengthened its digital infrastructure to support its global operations and ambitious growth plans.
Careem has built on its early localised solutions to create scalable tech systems that balance global efficiency with local customisation. In March 2025, Careem Groceries adopted an AI-powered invoice automation system using Oracle technologies, including Oracle Integration, Oracle Cloud Infrastructure Document Understanding, Oracle Autonomous Transaction Processing, and Oracle APEX. This system extracts key invoice details, matches them to Goods Receipt Notes, and stores the data in a centralised database. The results? A 70% reduction in invoice processing time, saving 332 hours per month, and a 37% increase in processing capacity - now exceeding 10,000 invoices monthly - all without adding staff [10].
"Through Oracle and their AI-powered process automation, Careem has reduced operational overhead and enabled seamless scaling - allowing us to focus on delivering exceptional value to customers."
- Harris Qureshi, Application Integration Specialist at Oracle [10]
Additionally, Careem harnessed Big Data Analytics to enhance its services, anticipate demand trends, and fine-tune features for specific markets [8]. Its modular tech architecture and custom-built mobile software allow for rapid feature rollouts, ensuring a consistent user experience across 80 cities in 10 countries.
For UAE startups aiming to grow beyond their initial offerings, Careem's model provides valuable lessons. Building adaptable, AI-driven systems from the ground up enables rapid growth without sacrificing service quality. Resources like Founder Connects also support startups by linking founders to mentors and experts who can guide them through the complexities of scaling technology for international markets.
Careem's journey offers valuable insights for startups aiming to expand internationally. By focusing on excelling in its core markets first, the company created a solid foundation for future growth. This approach highlights the importance of consolidating initial successes before venturing into new territories, ensuring long-term sustainability[5].
Central to Careem's success was its emphasis on market research and localisation. By tailoring services to meet the unique needs of each market and forming key partnerships, Careem navigated regulatory challenges with greater ease. A prime example of this strategy was its collaboration with the Saudi Central Bank to launch Careem Pay, ensuring compliance with local financial regulations[5]. These partnerships not only smoothed market entry but also mitigated potential risks.
The company’s phased expansion model was another standout strategy. By first mastering the ride-hailing sector before branching into other services, Careem built both operational expertise and consumer trust. By 2024, this approach allowed the company to serve over 48 million registered users across 12 services, showcasing how thoughtful expansion can lead to significant growth[5]. Additionally, leveraging community support became a key driver for scaling efficiently.
Scaling from a local business to an international success story requires more than just funding - it calls for mentorship, strategic alliances, and shared knowledge. Founder Connects addresses these needs by fostering a community of over 250 UAE-based founders. Together, they’ve raised AED 189 million in funding and saved nearly AED 3.89 million in operational costs[11].
Through monthly virtual masterminds, the platform offers structured sessions where founders exchange ideas, tackle expansion hurdles, and hold each other accountable. These collaborations have already led to 98 successful partnerships, providing startups with actionable solutions to complex challenges[11].
Founder Connects also facilitates introductions to seasoned entrepreneurs who’ve successfully scaled their businesses internationally. These expert connections can be game-changing for startups navigating unfamiliar markets. As Ken Blanchard aptly put it, "None of us is as smart as all of us."[11]
The platform further supports growth by connecting startups with investors who specialise in MENA markets. These curated lists help founders secure funding from investors who truly understand the region’s dynamics. Additionally, real-time problem-solving tools, such as chat features and exclusive events, provide immediate guidance during critical decision-making moments. While these resources fuel expansion, maintaining operational focus remains essential.
Careem’s success also highlights the importance of balancing rapid growth with operational stability. Instead of pursuing aggressive expansion at any cost, the company prioritised strategic partnerships and steady growth, ensuring strong financial health along the way[5].
Operational excellence was a cornerstone of Careem’s strategy. By focusing on areas like fleet logistics, regulatory compliance, and driver efficiency in its core markets, the company laid the groundwork for international success. This disciplined approach paid off - by 2023, Careem generated over US$500 million in revenue while serving 48 million users across 10 countries[5][13].
Collaboration with regulators proved equally crucial. By working alongside local authorities and respecting existing frameworks, Careem minimised compliance risks and sped up market entry. At the same time, its sensitivity to local cultures and investment in empowering local talent gave it a competitive edge[1].
Technology also played a pivotal role in Careem’s scalability. Its modular tech architecture and custom-built mobile software allowed for rapid feature rollouts while maintaining a seamless user experience. This commitment to tech innovation ensured efficient and scalable growth[8].
On the flip side, the example of TIER Mobility serves as a cautionary tale, showing how unchecked rapid expansion can lead to instability and missed opportunities[12].
Careem's remarkable journey - from a Dubai-based startup to its $3.1 billion acquisition by Uber in 2019 - highlights the immense potential of UAE entrepreneurs to create globally recognised, industry-leading companies [1]. Starting with a focus on local markets, Careem expanded its operations to serve millions of users across numerous countries, proving that startups from the region can achieve global success while staying true to their roots [5].
What’s perhaps even more impactful is the "Careem effect." Former employees, often referred to as "graduates of the School of Careem", have gone on to support and build the next wave of startups [3][14]. They now serve as a vital resource for aspiring entrepreneurs, passing on their expertise and lessons learned.
"This is a region I really love, and it has so few stories that are positive success stories where people have built up something that everyone's proud of, and I want that story to get known across the world, and I'll do everything I can to do that."
– Magnus Olsson, Careem Co-founder [4]
This sentiment echoes across the UAE's startup ecosystem, fuelling a collective drive for innovation and resilience.
In 2020, the UAE secured 60% of MENA's venture capital investments, amounting to AED 19.8 billion ($5.4 billion) [3]. This achievement reflects Dubai's thriving entrepreneurial environment, supported by initiatives like regulatory sandboxes and the Dubai Future Foundation's AED 1 billion seed fund [3].
For today’s entrepreneurs, Careem’s success offers a valuable roadmap. Their strategy emphasised excelling locally before expanding globally, understanding cultural nuances, and forming strategic partnerships to navigate complex regulatory landscapes. The company’s ability to dominate key markets like Dubai and Riyadh, capturing an estimated 80% market share before scaling internationally, showcases the effectiveness of this approach [5].
With the global ride-sharing market expected to grow by 40% between 2023 and 2028 - reaching an estimated $216 billion in revenue by 2028 [1] - the opportunities for UAE startups are immense. As Noor Sweid, Managing Partner at Global Ventures, aptly puts it, "Dubai's attitude has always been, 'let's try to make the impossible, possible'" [3].
Careem’s legacy is a testament to the fact that UAE startups can thrive globally while maintaining their cultural identity. For the next generation of entrepreneurs, the path forward lies in blending technological innovation, cultural awareness, and strategic patience - qualities that turned a regional ride-hailing service into the Middle East’s first unicorn and continue to inspire new ventures across the UAE.
Careem achieved success in diverse markets by embracing a localised strategy that honoured cultural differences and adhered to regulatory guidelines. By assembling local teams and forging partnerships, the company gained deeper insights into the specific needs of each region, allowing them to adapt their services to fit seamlessly.
To maintain compliance and support growth, Careem prioritised technology that could handle different operational systems across the Middle East, North Africa, and Pakistan. By aligning its services with local consumer habits and preferences, the company boosted user engagement and cultivated strong brand loyalty in every market they ventured into.
Strategic partnerships played a key role in Careem's growth and success on a global scale. By teaming up with local businesses and service providers, Careem was able to customise its services to suit the unique needs of different markets. These collaborations allowed the company to expand its offerings beyond ride-hailing, introducing features like food delivery and financial services that struck a chord with local customers.
A notable example is Careem's partnership with Saudi Arabia Railways (SAR), which made commuting more convenient by setting up dedicated pick-up and drop-off zones at train stations. These kinds of alliances not only enhanced the customer experience but also helped Careem remain competitive in a dynamic market. This approach ensured steady growth across the region and cemented Careem's reputation as a reliable and adaptable service provider in the UAE and beyond.
Careem's journey into becoming a super app has propelled its growth and broadened its offerings across the Middle East. What started as a ride-hailing service now includes food delivery, grocery shopping, and digital payments, meeting the region's rising demand for seamless, multi-service platforms.
This shift has done more than just improve convenience - it has deepened customer loyalty, giving Careem a significant edge in a competitive market. By tapping into the region's growing smartphone usage and preference for integrated digital solutions, the company has solidified its position as a leader in digital commerce. In 2023 alone, Careem generated over AED 1.8 billion in revenue, showcasing its impact. Its forward-thinking strategy is shaping the future of e-commerce and daily services, both in the UAE and across the region.
