Course Title: Careem

Student’s Name:

Date:

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Table of Contents:
1 Executive summary:.........................................................................................................2
1.1 The company:...........................................................................................................2
1.2 Demographics:..........................................................................................................3
1.3 Pestle Analysis:.........................................................................................................4
1.4 Cultural Factors:.......................................................................................................6
2 Company Snapshot:..........................................................................................................6
2.1 Place in the industry:.................................................................................................6
3 Description:......................................................................................................................7
3.1 SWOT Analysis:.......................................................................................................7
3.2 Competitive Review:................................................................................................8
4 Conclusions:.....................................................................................................................9
5 References:.....................................................................................................................10

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 Executive summary:

The aim of this report is to represent a new service that can be provided by a
Middle Eastern company called Careem. Careem is a private transport company that
undergoes its operations through the use of technologies and smartphone devices. The
company has been regarded as a pioneer of the region’s ride-hailing economy and has
been expanding over the years.

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1 Introduction

Careem has been regarded as one of the most effective most pleasing companies
around the globe. The company has been able to facilitate and reach the homes of
millions of customers and serve millions of rides on a daily basis to due to its
convenience, reliability and accuracy. Careem’s mission is to improve the lives of
individuals and construct a long-term organisation that inspires. The company was
established in July of 2012; the company operates in over 120 cities across 15
countries around the world and has been able to created more than one million job
opportunities in the region.

2 Industry Background

The company operates in a rather difficult market that is huge in size as it

involves the aspect of public transports, government yellow taxis and other private
companies that have engaged in private transport. The growth of ordering transports
on the apps has been growing over the years with the increase of the use of
technology adaptations in the corporate and personal lives of people. Mudassir
Sheikha is the cofounder of the company, a Stanford graduate, has stated that the
company wishes to operate with the 700m people in the Middle East. Careem has
been called Uber of the Middle East and has been regarded as one of the most
facilitating companies operating in the Middle East. The company has been able to
operate in Jordan as it has been found that, just 350 large buses cater for a city of
more than four million people and account for fewer than 5% of journeys in Amman
each day (Lakhpatwala, 2018). The growth of the industry has been increasing and the
growth of the public transports does not seem to be catching up. The citizens of
Amman have reached a point where it has been regarded as crucial to have such apps
that facilitates the transports of private lifts.

The industry that the company operates in has been regarded to generate
$355bn industry according to research firm IHS Markit. The company has been
escalating with growth over the years, specifically being able to establish an important
position in the Middle East and conquer a strong market position amongst the

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countries even more than Uber. The rates have demonstrated a rise of 25% monthly
clip for the past two years in Jordan. The company still did not officially publicly
provided their annual revenues, however a recent statement suggest that the revenues
of the past couple of years has been seen to be close to hundreds of millions of
dollars. The company has received a vast amount of recognition in the market. The
company states to have impacted over the lives of 50% of the people in the region.
The company was given a vast amount of brand recognition from all stakeholders
involved. The company was even granted number 1 employer of the year (MacBride,
2016). The company has been able to also establish a double-digit stake in Careem,
which has also been found to be the first Middle Eastern ride-share start up business
to have reached a $1 billion valuation.

The direct competitors of Careem include the company Uber which has been
able to establish a strong brand image in the Jordanian market in the past few years as
well. The major key that the company holds against Uber is the fact that Careem has
recently been fully licensed in Jordan unlike Uber. Uber is Careem's number one
rival, and while it can be regarded that Careem has few advantages over its rival Uber
is more international and has been regarded as less expensive by users. Uber operates
in the Application Software space however research has stated that Uber generates
$6.4B more revenue than the company Careem. The company is striving towards
achieving higher revenues and gaining higher publicity all over the world, however
the current situation in the Middle East includes the fact that Careem is growing and
developing more with popularity amongst users. Moreover, the company has much
higher brand recognition as the company has been granted license to market their
service in all over the streets of Amman (Owler, 2019).

Indirect competitors of the company include the public transportation service

and yellow taxis who have repeatedly protested against the ride hailing apps. The
yellow taxis have also been able to undertake activities that have negatively impacted
the business. The competition between Careem and the service it provides with the
yellow taxis has been regarded as unfair and attacks have also been headed towards
the staging sit-ins and denouncing the lack of governmental action in this regard.
However, research has stated that the residents of Amman prefer these apps due the
safe and better service they receive from them. It has been found that yellow taxi
service have been regarded as unreliable due to the fact that they do not offer pickup

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locations, many of the drivers are rude and dangerous, many of the drivers may not
agree to the drop off location requested by the customers, some of the drivers have
been described as violent and degrading of the women and children that ride i=with
them (Dupire, 2017).

3 Internal Analysis

The company has aimed on dealing with drivers, employees and customers all over
the world of different ages, ethnicities and backgrounds. The company has been able
to engage with 10 million registered users in 60 cities in 11 countries. There has been
over 250,000 contractor drivers, called captains, work for Careem. The company
deals with millions of customers (Olsen, 2017).

The company has been able to set a strong market position and strengthening
their brand recognition in the market. The company has been to achieve strong
marketing achievements within the country as billboards, flyers and promotional
activities including corporate social responsibility have been recognised amongst
citizens all over the country. The company has engaged with the customers in all
forms of promotional method and have been able to establish a strong brand image.

The company Careem has been able to attract customers with their strong
brand positioning and strengthening image using their logos and billboards all over
the country. Moreover, Careem has been able to attract customers even more by
providing promotional codes that provide the customers with discounts on their rides.
This service and promotional technique has not been provided by the direct and
indirect competitors whereby the company has strategically implemented effective
methods of marketing to attract more customers and to gain higher customer loyalty
(prezi.com, 2019).

The company wishes to operate in the most effective and ethical method possible.
Careem has been regarded as an ethical company that focuses on effectively treating
their customers, their employees and the governments that they operate in. this has
been achieved through the completion of ethical consideration and friendly
regulations that have created a friendly culture and code of conduct within the
company. The drivers are referred to as captains and are required to ensure that the

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customers that drive with them are treated with respect and convenience. The
company has also been able to please a vast amount for the governments that they
operate in due to the fact that the company undergoes vast amount of volunteering
campaigns and corporate social responsibility activities. “The idea was not just to
build a big business, but rather to build a business that would have a big impact."
This statement was posted on the company’s websites and has been stated by the co-
founder of the company Mudassir Sheikha (Careem.com, 2019).

4 Conclusions

In conclusion, Careem offers advanced technological service that will enable the
customers to sue technology to facilitates their lives and make it even easier. The
company needs to use as much digital marketing as possible in order to ensure that
their service is publicised as much as possible. Moreover, the company needs to
contract with social media influencers in Jordan, those that have the most followers
and ensure that they sponsor the service that the company is willing to provide. The
company should provide the social media influencers with promotional codes and free
trials in order to ensure they can try the service and promote it to the customers free of
charge. The company needs to consider customer satisfaction and comfortableness.
They need to ensure that the software implications within the app that will allow the
service to be possible are user friendly and easy to use in order to ensure hath the
customers will be willing to engage with the service and use it as often as possible.

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5 References:

Careem.com. (2019). Learn More About Careem - The Careem Story. [online] Available
at: https://www.careem.com/en-ae/our-story/
coursehero.com. (2019). SWOT Analysis for Careem. [online] Available at:
https://www.coursehero.com/file/30463654/Idocx/
Cuthbert, O. (2016). Jordan cracks down on Uber and Careem as congestion clogs its
capital. [online] the Guardian. Available at: https://www.theguardian.com/sustainable-
business/2016/nov/18/amman-congestion-crisis-uber-careem-jordan-ride-sharing-apps
Dupire, C. (2017). Citizens divided over ride hailing apps. [online] Jordan Times.
Available at: http://jordantimes.com/news/local/citizens-divided-over-ride-hailing-apps
Frue, K. (2017). PESTLE Analysis of Uber. [online] PESTLE Analysis. Available at:
https://pestleanalysis.com/pestle-analysis-uber/
Giannikoulis, A. (2017). How is Careem worth $1.2bn?. [online] ArabianBusiness.com.
Available at: https://www.arabianbusiness.com/interviews/transport/379837-how-is-
careem-worth-12bn
Lakhpatwala, Z. (2018). CAREEM launches regional CSR campaign. [online]
Communicate Online | Regional Edition | Advertising, marketing, public relations and
media in the Arab world and beyond. Available at:
https://www.communicateonline.me/more/careem-launches-regional-csr-campaign/
MacBride, E. (2016). How A Startup From The Middle East Is Beating Uber, And Its Lofty
Ambition For The Future. [online] Forbes.com. Available at:
https://www.forbes.com/sites/elizabethmacbride/2016/05/30/careem-lofty-
ambition/#13d5dfe929f4
Olsen, P. (2017). Meet The Unicorn That's Beating Uber In The Middle East. [online]
Forbes.com. Available at: https://www.forbes.com/sites/parmyolson/2017/06/15/dial-a-
caravan/#2167d7132828
Owler. (2019). Careem Competitors, Revenue and Employees - Owler Company
Profile. [online] Available at: https://www.owler.com/company/careem

PESTLE Analysis. (2019). SWOT analysis for UBER. [online] Available at:

https://pestleanalysis.com/swot-analysis-for-uber/
prezi.com. (2019). Competitive Analysis- Uber vs Careem. [online] Available at:
https://prezi.com/lyz6lqnthpfv/competitive-analysis-uber-vs-careem/

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Qaddoura, E. (2018). PEST Analysis of Careem Application – Enas Qaddoura – Medium.
[online] Medium. Available at: https://medium.com/@enasqaddoura/pest-analysis-of-
careem-application-a413ed1d1f85

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6 Appendix

Pestle Analysis:

Political:

The company has been dealing with vast amount of criticisms and attacks
from the local taxi drivers in the country due to the fact that the taxi drivers are
claiming that the company has been granted an official license yet. The drivers and
the company alike have been dealing for years with the difficulty that their offices
have been licensed but their cars have not the company has been having to deal with a
number of political issues including fines and car confiscations that required the
company to later pay the fees to set the license of the driver’s free. “It’s illegal to use
private cars for public transport,” says Nourhan Shuqman, an advisor at Jordan’s
Ministry of Transport. While the apps provide a “great service”, she says, the taxis are
“a big sector that we cannot neglect” (Cuthbert, 2016).

Economic:

The country’s economy is facing a downfall. The company Careem has to deal
with different economies of scale that other countries that they operate in. Moreover,
the company needs to be fully aware of the economic changes occurring in the
country in order to be able to conduct effective decision making processes. Due to the
extremely challenging external environmental factors that are occurring the criticism
that the company is receiving it is always essential for Careem to ensure they are
operating in prices that can be regarded affordable to everyone.

Social:

Considering the social aspects is in an extremely essential manner as well. the

company need to ensure that proper market research occurs in the country in order to
ensure that the comprehend their customers’ needs and acknowledge how to grant
their consumers their needs. The social aspects that may impact the company in
Jordan include the availability of the drivers. In order for the customers to engage
with the company and to use the app the company needed to provide the customers
with availability, comfortableness and accurate appointments. The fact that the

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company is called Careem is more Arabic oriented thereby closer to the hearts of the
customers and the company has provided features that can suit the Arab world and
their social way of living. Some of those factors included the fact that the there are
several payment methods available including cash and that the customers can add
their destinations whenever they want even after riding with their captains.

Technological:

The technological aspects of the external environment for Careem can widely
impact the method by which the company operates. This is due to the fact that the
businesses solely depend on the fact that consumers order transportation from their
smartphone devices where they download their apps and require data or internet
connection. Moreover, a common concept that has been occurring amongst the
industry of Careem, Uber and other transportation apps is the use of social media to
explain experiences and share stories of what have occurred in their rides. This
encouraged new customers to do the same. Appointments are run through the app,
where the Careem app provides the customers of the estimate that they will be
charged for their ride. This can depend on the drop off location, the weather, the
occasion and the timings. Without technology the company would be able to conduct
an estimate based on those factors. The company uses real time processing in order to
provide the consumers with an estimate of the timings. The technological
developments in the world are helping the company advance their abilities and
provide customers with more capabilities and satisfactory elements that can be
provided to their consumers.

Legal:

The company has been dealing with a number of backlashes from the
government and the legal procedures required in order to fully licensing their
business. This has included a vast amount of procedures. The company have only
been granted recent licensing. A government restriction on ride-hailing apps stated
that cars impounded and drivers fined, accused of violating Jordan’s Public Transport
law, which commands that only licensed cars can provide public transport services for
a fee. Moreover, legal restrictions in the region have also suggested that the company
can only provide rides without licensed cabs, limos and hotel taxis. This has been
regarded as a huge disappointment for the company. The company has stated the

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country has a vast amount of potential, however in order to safely operate in the
country the company will need to fully comply by the law.

Environmental:

The creation of electronic vehicles that use renewable energy instead of fossil
fuels and the use of hybrid cars that use much less fuels has been regarded as a major
element in the business. Drivers and the company itself are able to achieve higher
revenues due to this development and due to the decrease in pollution from the use of
these vehicles.

 In order to operate in different countries companies need to ensure they

comprehend the different cultural aspects that may impact the health of the company.
Strict family traditions and cultural backgrounds of countries in the Arab world may
play a vital role on the performance of the business. In order to operate within Jordan
the company had to reassure their customers of all the safety implications that Careem
had to offer.

In one of the Arab countries that Careem has operated in, Saudi Arabia,
customers were offered a service of sacrificing sheep for a charge. This action was
based on an activity that Muslims undertake in their Eid al-Adha holiday. This service
was provided in order to simplify the tradition which requires the Muslims to visit a
farm and purchase a sheep sacrifice it and distribute it to family and the needy. Such
activities demonstrate that the company cares about the family traditions of their
customers and undertake activities in order to comprehend their customers’ traditions
(Olsen, 2017). Such measures were also undertaken in the country Jordan and the
company has engaged with a vast amount of campaigns and volunteer work in order
to further connect with the community.

SWOT Analysis

Strengths: Weaknesses:
The company has become a well braded Unpleasing treatment in some cases
business with a large market share from both stakeholders involved, the
Low operational costs customers and the drivers
Strong promotional practices Questioning of privacy concerns
Large amount of employees More expensive than other

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Huge customer audiences transportation methods in Jordan
Safe transportation methods for men and Low loyalty from customers
women alike Unstable and unpredicted business
Opportunities: Threats:
Increase number of captains operating Safety and securities risks for online
with the company theft when using online transactions
Increase in the use of technology for Increase number and strength of
transportation bookings competitors
More publicity amongst the Arab region Constant backlash of government and
Cheaper use of electric cars and hybrid yellow taxis in Jordan
cars saving costs on cars and Companies such as Uber and lift in the
transportation fees industry have been banned in a number
Increase in social media use and of countries worldwide including
promotional platforms Germany and Venezuela
Innovations and developments Self-driving cars, e.g. Google Cars, will
facilitating the use of information eliminate the need for companies like
technology within the business Uber and Careem (PESTLE Analysis,
(coursehero.com, 2019) 2019)

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