De­liv­ery Hero Ac­quires Car­riage

Arabnet - The Quarterly - - Industry Stories -

In May, on­line food take­away firm De­liv­ery Hero agreed to buy Mid­dle East food de­liv­ery plat­form Car­riage, in a se­ries of tech­nol­ogy deals in the re­gion for around $100 mil­lion. This is the high­est IRR in the re­gion to date. The ac­qui­si­tion came fur­ther to Car­riage’s re­cep­tion of a seed cap­i­tal fund amount­ing $1.3M in Jan­uary 2016 to kick-start the project. De­liv­ery Hero cur­rently op­er­ates in 53 coun­tries in­ter­na­tion­ally in Europe, Asia, Latin Amer­ica, and the Mid­dle East and part­ners with over 300M restau­rants. What’s in­ter­est­ing to note is that Rocket In­ter­net has in­vested $613M in De­liv­ery Hero. Rocket In­ter­net ac­quired Car­riage’s main com­peti­tor, Tal­a­, in Fe­bru­ary 2015 for roughly $170M. Car­riage is a food-de­liv­ery ser­vice in Kuwait that of­fers de­liv­ery from reg­is­tered restau­rants, many of which don’t usu­ally de­liver, with live­track­ing of or­ders. Car­riage’s process is straight­for­ward. Cus­tomers se­lect their area, choose from a list of over 50 restau­rants, and place their or­der. The or­der is then seen in­stantly by both the restau­rant and the near­est avail­able driver, who then heads to the restau­rant to pick up the or­der and de­liver it to the client. In the mean­time, cus­tomers can track their or­der and view the es­ti­mated time of ar­rival. Cus­tomers can pay cash on de­liv­ery or on­line via credit cards, and Car­riage earns one KD per or­der re­gard­less of lo­ca­tion or the or­der size/value. While Car­riage en­tered a com­pet­i­tive mar­ket just 14 months ago, which in­cludes Car­riage’s main com­peti­tor, Tal­a­, Car­riage is unique in that it acts as a link be­tween restau­rants and clients, and takes care of all lo­gis­tic ser­vices. Car­riage also does not have a ‘min­i­mum-or­der’ pol­icy and is one of the fastest food de­liv­ery ser­vices in Kuwait, with the av­er­age de­liv­ery tak­ing an av­er­age of 45 min­utes.

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