CAREEM

CAREEM

 Careem is a transportation network company based in Dubai, with operations

in over 100 cities in 14 countries in the Middle East, Africa, and South Asia.
The company is valued at around $1.2 billion as of 2017.

 Co-founded by Mudassir Sheikha and Magnus Olsson.

 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.
Main Competitors
Major Competitors
4 Ps of Careem

 Product
• Go
• Bike
• Delivery
• GO+
• Business
• Riksha
• Go Mini
• Pickup
• Ambulance
 Place

• Careem is Dubai based transportation network organization, available in 100

cities and 14 countries including Middle East, North Africa and South Asia

• Price
• Careem is economical and seldom includes peak surcharges. It also offers
monthly packages for its users who use service regularly. Careem is concerned
with the availability of its car and charges according to fair and usage. Their
wallet service is convenient for its users as it deducts the fare and rest is added
in wallet which can be utilized later.
 Promotion

• Advertising
• Billboards
• PR
• Promos
• Partnerships
• In App Notifications
 SWOT Analysis
 Strengths

• Well recognized brand

• First mover advantage
• Operational Cost is less
• Great rating system from both passengers and drivers end
• Good promotional system
• Engaging via local / international sponsorships
• Huge number of cars available anywhere and at any time
• Drivers can choose their working hours
• Focus on CSR activities
• First Female Driver
  Weakness

• Bad treatment in some cases by both sides

• Customers may question privacy concerns regarding their data
• Unpredictable Business
• Not many drivers on holidays
• Smaller company ( in terms on capital ) in comparison to its competitor Uber
 Opportunities

 Carpooling opportunities in metropolitan areas

 Partnership with super marts to provide delivery services
 Partnership with government
  Threats

 Ubers entry into the market

 Protest by taxi unions
 New tax legislations
 Gaining trust of customers
 Target Audience

 Ages between 16-35 primarily

 Smartphone owners
 Students
 Both genders
 Repeat Customers ( likely to purchase again )
 Competition
Direct
 UBER
 Not in smaller cities yet
 Second movers advantages
 Backing $66bn
 Ties to bank of Punjab
 Ties to government cab scheme
 Popular in other regions
 Competition
Indirect
 Personal Vehicles

 Large amount of investment in purchasing vehicles

 More continent
 Cheaper to drive in comparison to fuel costs in Careem
 Competition
Indirect
Taxis
 Redundant System
 Worse Vehicles
 Charges more
 Drivers earn less
Comparative Analysis of Careem and Uber

 Fares
 Price Surcharge (Uber) vs Peak Factor (Careem)
 Coverage Areas of both
 Maps
 Customer Services
 Marketing Campaigns
Customer Perceived Value

 One tap and a car comes directly to you

 Your driver knows exactly where to go
 Payment is completely cashless
 24/7 Customer Care
 Blue Ocean Strategy

 Careem’s Blue Ocean Strategy can be as the company eliminated the hassles of booking
taxi, paying the driver exactly or change problems, tipping issues, arguments & denial
of services, reduced the problems of drivers too along with customers by matching the
rides and Careem just takes 20% or less from total fare and rest goes to drivers,
drastically raised the customer service levels and comfort levels and created a new
market by using the latest technologies and devices
 Careem does not project itself as luxury car service but as reliable car service and is
facing tough competition from its competitors like Uber etc. but also facing many
regulatory hurdles in different citiess and complaints from the local cab service and
taxi players.
 Pricing depends on the car and distance
Reference Groups
Brand Endorsement
Emotional Branding
Co Branding Partnership
Loyalty Programs
 Customer Lifetime Value

 Forecast the # of active riders. That's easy because it's mostly under their control
(because it's paid acquisition) and / or easy to model
 Estimate the # of potential requests. Analytics driven; people opening the app and
starting the booking process.

 Understand the "book abandon rate" from cabs not being available. There's probably
good estimates and rules of thumb, and they vary by location, time of day etc.
 Estimate the upper and lower pricing limits. Pricing can reduce the abandon rate, but
only within bounds (absolute floor = cost of petrol, absolute ceiling = consumer
willingness to pay).
Corporate Image
One Liners
Pull Strategy
Pricing
Acquisition
 Opportunities to Avail

 In Ramadhan

• Gift Bag for users on Eid Days

• 50 – 100 credit to users sa a way to say thank you in Ramadhan
• Cheap rates to travel to the mosque on Fridays
•
 Focus on CLV

 Reward customers with surprise benefits

 Identify routes with most traffic on peak times at specific days
 Look for consumers who use such routes daily
 Fix rates on such routes or on occasions instead of Peak Factors
 Send more proactive Text Messages
 For eg : This is your 25th Careem Ride we will credit 25% on your next Careem
ride.
 Take ideas from the airline sector

Create Tiers
 Silver
 Gold
 Platinum
 Each tier has its unique benefits

Create a subscription service by partnering with Cellular Companies

 This allows users who do not have credit cards to use / top up or buy packages
easily using their mobile making it more user friendly to use
 Build Captain Relationships

Captains happiness and loyalty = Consumers happiness and loyalty

 Maximize drive time

 Create feeling of ownership in pride and brand
 Build consumer goodwill
 Promote captains in events , helps build community
 Ensure strong communications
 Free oil change
 Discounts on repairs and maintainance
 Partial expense ( water bottle , snacks etc )
Penetrate the market more

 Same day delivery service with Daraz

 Food Delivery
 Van Service for school / tuitions ( makes it easier for parents to track the
whereabouts of their kids) Careem Sahoolat
 Partner with airlines to pick and drop passengers. Service can be available
with the airline and travel agent. Conditions applied