Since we’ve been on the subject of food delivery apps this past few days, here is another interesting tidbit.
There is a new delivery app that will be entering the market soon and it will be called CARI. The delivery platform is by the previous owners of Carriage who had signed a 5 years non-compete agreement with Delivery Hero when they were acquired back in 2017. Since the 5 years are now up, the previous owners are entering the market again.
What will they bring to the table?
When Carriage initially launched one of the few things that made it different than Talabat was the quality of restaurants over quantity. They had a much smaller list of restaurants available but they were all good restaurants, a curated list. CARI is bringing that back, they have only been approaching companies that have good brands and asking them to join the platform.
Another differentiating factor is that they will guarantee 30 minutes delivery. This is going to be big since you’re more likely to order from CARI if your favorite restaurant on it will deliver to you quicker than other apps. Restaurants that are currently being invited to join the platform will only be accepted if they can guarantee food can be prepared within a specific time (I think 6 minutes). If they can’t, then they won’t be allowed to join the platform. Another way of making sure the food will get to you in 30 minutes is by reducing the delivery zone. Currently, most delivery platforms allow restaurants to deliver within a 10km radius, CARI is going to deliver within a 5km radius. This means the riders don’t have to travel a long distance to deliver the food to you. On the downside it also means you might no longer be in the delivery zone of your favorite restaurant.
Not actual logo
Finally, they’re also doing something different with the restaurants. Most delivery platforms right now charge restaurants a 25-35% fee off every order as well as 1KD from the customer to deliver the food. CARI is taking a different approach. To entice restaurants to join their platform, CARI is charging restaurants 0% commission for the first couple of years. Instead, restaurants will have to pay a one-time fee of **KD (I can’t disclose the exact amount) for every new customer that orders from their restaurant. So say I order from McDonald’s for the first time, McDonald’s would pay CARI 5KD (for example) as a new customer fee. And that’s it, no other fees. It’s kinda genius, CARI gets this big cash influx up front, and restaurants pay it with the hopes that the same customer will order again from them. Most restaurants will need the same customer to order from them maybe 8 or 10 times to cover the initial acquisition fee but after that, all the money goes into their pocket. If the customer doesn’t like the food and doesn’t order from the restaurant again or doesn’t order enough times over the next few years while this 0% commission is in effect, then that’s a loss for the restaurant.
When I first heard about this fee structure I was in awe. Usually, the platform would pay to acquire new customers but in this case they’ve not only managed to make it so that restaurants would pay the acquisition cost, but that fee is going to be a major cash boost at launch which should help CARI fast track their way into profitability. I love it.
With Carriage, Talabat, Deliveroo already owning the majority of the market share, the Saudi app Jahez entering the market, and now CARI also coming in, I think things are going to get really exciting.
Update: Their Instagram account is up and they’ve revealed the logo @get.cari
