Careem Scales Back in Saudi Arabia: A Strategic Reset in the Super App Era
Dubai-based Careem is undergoing a notable operational shift in Saudi Arabia, moving to scale back most of its consumer-facing services, while retaining ride-hailing and bike services, according to multiple reports.
The company is reportedly reducing activities including grocery delivery and quick commerce, although no official confirmation has been issued. However, growing indicators suggest a strategic recalibration within the Kingdom.
This shift comes less than 13 months after the launch of Careem Market in Riyadh, which was a core pillar of its “super app” strategy in Saudi Arabia.
At launch, Careem promised grocery deliveries within 20 minutes through a network of dark stores, expanding via partnerships with retail chains such as Tamimi Markets. However, the company did not disclose key operating metrics such as order volumes or average basket size, limiting visibility into performance.
Current user experience in Riyadh reportedly shows a reduced range of services within the app, compared to more integrated offerings in markets like Dubai and Amman.
Early signals of this shift emerged through former employee posts on professional platforms and talent movement trackers, reinforcing the likelihood of internal restructuring.
In this context, Abdullah Elias, Careem co-founder, was cited referencing a “strategic pause” in quick commerce operations in Saudi Arabia, suggesting reassessment rather than abrupt withdrawal.
Reports also indicate the exit of over 60 employees, including senior leaders across operations, marketing, and supply chain functions, as part of the ongoing restructuring.
The move reflects broader pressure on the quick commerce sector in Saudi Arabia, driven by high operational costs and intensifying competition from players such as Amazon, Noon, and Keeta, alongside local platforms like Jahez.
As a result, companies are increasingly shifting toward partnership-based models with retailers instead of direct infrastructure-heavy investments to improve efficiency and reduce operational risk.
This transition raises questions about the viability of the “super app” model in high-cost markets like Saudi Arabia, where balancing rapid expansion and financial sustainability remains challenging.
It remains unclear whether this represents a permanent retreat from certain verticals or a temporary repositioning, pending official clarification from the company.
More broadly, the development highlights a real-world stress test for quick commerce economics in the region, underscoring how even well-funded companies are reassessing capital deployment in fast-evolving competitive markets.
