Ride hailing inDrive acquires Pakistan’s KraveMart to bolster grocery delivery

Global ride-hailing giant inDrive has made a strategic move by acquiring Krave Mart, a quick-commerce startup based in Pakistan. This acquisition, confirmed by inDrive, aims to strengthen its grocery delivery services in South Asia and marks a significant step beyond its traditional ride-hailing business. The all-stock agreement, reached last year, has recently received the green light from the Competition Commission of Pakistan, allowing the deal to move forward. While inDrive has not disclosed the financial specifics of the acquisition, the partnership is poised to enhance the grocery delivery landscape in Pakistan, where Krave Mart operates in major cities like Karachi, Rawalpindi, and Lahore. Founded in 2021, Krave Mart specializes in delivering groceries within about 30 minutes via a network of dark stores, making it a vital player in the region's burgeoning quick-commerce market. This acquisition aligns with inDrive’s broader strategy of transitioning from ride-hailing to a multifaceted commerce platform, having previously launched grocery services in Kazakhstan and recently entering the Pakistani market in collaboration with Krave Mart. Andries Smit, Chief Growth Businesses Officer at inDrive, expressed optimism regarding the approval and the partnership, emphasizing their commitment to enhancing access to swift grocery delivery services across Pakistan. The inDrive.Groceries brand has recently been launched in Lahore, while both inDrive and Krave Mart will continue operating in Karachi as they expand their offerings. However, entering the grocery delivery space in Pakistan poses challenges, particularly due to the strong presence of Foodpanda, which has dominated the market for over a decade, backed by the German delivery powerhouse, Delivery Hero. Industry experts have noted that quick-commerce requires substantial investment and time to achieve profitability, making it a tough arena for new competitors. Despite these challenges, inDrive has gained significant traction globally, ranking as the second-most downloaded ride-hailing app since 2022, with over 400 million downloads. The company operates in more than 1,000 cities across 48 markets, positioning itself well as it diversifies into grocery delivery and other services.