Careem introduces commission-free model for UAE restaurants

Careem introduces commission-free model for UAE restaurants

UAE-based super app Careem, has introduced a commission-free model for its restaurant partners in a step to relieve the economic impact of the Covid-19 crisis on UAE- based local eateries according to the company. 

The new model replaces the percentage-based commission that food aggregator apps conventionally charge with a monthly subscription fee, a model adopted by UAE-based Chatfood. According to the company's release on Tuesday, the move comes at a time when restaurants are struggling with high commissions imposed by food aggregators and food delivery apps, which tend to charge commissions as high as 30-35 per cent per order.

Depending on the size of the business and the volume of orders, merchants can choose from four bundles that suit their business needs. The monthly subscription fee is fixed monthly and does not change with the increment of orders, giving restaurants more control and the ability to better plan their cashflow. Merchants signing up to Careem's new model will have access to integrated payments, customer care and marketing.

For small-value orders, restaurants will keep about 5 per cent more of the value, while for larger orders the difference can be as much as 17 per cent higher by switching to Careem's new model

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