UPDATED: Delivery Hero Buys Carriage!
Online food takeaway firm Delivery Hero, which sources have said is considering a flotation imminently, has agreed to buy Middle East food delivery platform Carriage, the latest in a series of technology deals in the region for a rumored amount $100 million. If the rumored amount is true, this may be the highest IRR in the region to date. Carriage had received a seed capital fund of $1.3 million in January 2016 to kick-start the project, and Kuwaiti investors increased the funding again last May.
Delivery Hero operates in 53 countries internationally in Europe, Asia, Latin America and the Middle East and partners with over 300,000 restaurants. What's interesting to note is that Rocket Internet has invested $613 million in Delivery Hero. Rocket Internet acquired Carriage's main competitor, Talabat.com, in February 2015 for roughly $170 million.
Carriage is a food-delivery service in Kuwait that offers delivery from registered restaurants, many of which don’t usually deliver, with live-tracking of orders. Abdullah Al-Mutawa, owner of The Stack restaurant and founder of Carriage, came up with the business model after he wanted to start offering a delivery service for his restaurant and realized how hassling and expensive it would be to set up.
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.