Delivery Hero Acquires Carriage
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, Talabat.com, 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, Talabat.com, 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.