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INFORMATION SYSTEMS
Careem
Final Project Report
Prepeared by:
BBA-7
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Company’s Introduction:
Careemis a transportation network company based in Dubai. It runs operations in over 100+
cities in 14 countries. The company is valued at around $1.2 billion as of 2017. Careem was co-
founded by Mudassir Sheikha and Magnus Olsson, who had both worked as management
consultants at McKinsey & Company. It started operating in July 2012 as a website-based
service for corporate car bookings, and evolved to become a transportation network company
with car hire for everyday use.
Careem started toying with the idea of launching in Pakistan in early 2015, and various pilots
were run that year. We began a test launch in October 2015 when I joined Careem, and we
launched in March 2016.
There are some factors which promote Careem to operate in Pakistan, these are given below
Technology is ‘Made in Pakistan. So, it is the only fair way that our people should benefit
from it
It is important to remember that Careem is a platform, not a service provider; ride hailers and
providers connect with each other using our technology, but that does not make us a transport
company.Careem’s market share is 31%, and annual revenue is$112million
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Industry Analysis:
Competitors:
UBER is the direct competitor of Careem. Market Share of Uber is 21%, and annual
revenue is $78.2million.Uber has revolutionized taxi service. It start inception in 2009.
Uber entered in the Pakistani market in the end of March 2016. It launch in Lahore, and
then expand to Karachi, Islamabad, Hyderabad, Peshawar and Faisalabad.
Taxi drivers still competitor of Careem. Due to culture, some families not allow to go in
Careem, they rely on family taxi driver.
Bykea
Razicar
Shahi Shawari
Personal Transportation
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SWOT Analysis:
Strengths:
Easy access
Low prices
Weakness:
Opportunity:
Acquisition opportunity
Expanding
Delivery services
Additional services
Electrical cars
Threats:
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Price War (Dollar & Gasoline price raise)
PESTEL Analysis:
Political:
Political parties association with existing transport ministries are against the operation of
such application
Economics:
More car companies may look to enter Pakistan due to rising economy
Social:
Technology:
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Growing number of smart phone users
Environmental:
Many believe Careem increases traffic congestion and fuel usage but many contradicts
because people may use Careem instead of public transportation. Analysts will have to
compare Careem fuel usage versus public transit versus own transportation for a thorough
analysis of Careem’s environmental impact.
Legal:
Careem being the first mover in Pakistan online taxi industry has the advantage of huge fleet
compared to competitors and Careem has shrunk the major market share of common cabs.
Innovation is the reason of existence for Careem. First, Careem itself is an innovation compared
to yellow cabs which exploit customers, don’t have good behavior and even don’t have good
service. Careem provides luxury and safe rides at your comfort-zone in economical prices.
Second, Careem has best price mechanism system keeping distance and time in mind,
they have set certain unit price of different range of vehicles. This gives customer a sense of
relaxation that they don’t have to worry about the calculation of fare or bargain for lowering fare.
This is win-win situation for both driver and customer as they don’t waste time upon fare. And
off course fare of Careem are already low as compared to yellow cabs roaming around the city
and price mechanism system gives an edge to ride-hailing services like Careem.
Third, Careem has recently upgraded security and privacy for customers with
Anonymous Caller ID service, with this Careem customers can call to drivers whom they booked
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ride without exposing their personal mobile number. As leaking the number was the serious
concern for many customers especially when it comes to female customers who have issues with
publicizing of mobile number. This is great innovation by Careem compared to online ride
hailing services’ competitors and also compared to yellow cabs.
Fourth, Customer Care Service is also the best innovation of Careem. This feature looks
after for the better services provided at the end of Careem and have set a helpline center to learn
customers’ issue at first. Customer Care Service resolves customers issues if any wrong happens.
Yellow cabs also lack in this feature as there is no one to record your feedback or issue against
yellow cabs.
Fifth, Payment via Plastic Cards or Careem Wallet, you can also go anywhere with
Careem without carrying physical money or keeping change of notes in pocket. You can pay
your ride charges via plastic cards i.e. Debit or Credit Card. And you can also top up your wallet
in Careem and then use it in your rides.
Sixth, Schedule your ride, Need to get to the airport or attend class in university on time?
You can book a ride for later and get picked up right on time. You can schedule multiple rides to
reach your desired destination exactly on time.
These were the main innovations which makes competitors of Careem irrelevant in ride hailing
industry. Careem is the largest online ride hailing service currently in Pakistan with huge number
of active commuters on daily basis considering Careem a safe and comfy for daily usage.
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own. Culture allows Careem to take decision wherever it works according to market
needs. Careem when launched in Pakistan, made decision considering Pakistani market,
they set better prices since start, they launched many campaigns like Women Captains to
empower women, during 2018 General Elections, Careem gave free rides to go and cast
your vote for national cause. So, in short, we can say Careem is working as international
firm but thinking as local firm anywhere it works.
2. Management: Careem’s management in Pakistan has set the best strategies in Pakistan
repelling all competitors behind. Careem’s management always remained proactive in
everything whether its CSR activities or getting other cities into Careem fold or even
launching a product, their management always remained at front. As Careem has the
highest penetration in Pakistan’s different cities than any service do. They also launched
many new services considering market, e.g. inter-city Careem service in metropolitan
cities or giving discounted health care options to their captains.
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