Made by

Zeeshan, Anoosha, Areeba, Rajni, Sajid, Hammad.

 Company Description
 Careem – subsidiary company of Uber.
 Business Model – Ride-Sharing.
 Most important stakeholders – Captains.
 Total Funding - $771 million.
 Total Rounds – 7.
 Total Investors – 22.
Mission 
Careem's mission is to simplify and improve the lives of people and build a lasting
organization that inspires. 

Aim
Their aim is to inspire not only anyone who is connected with their platform, but also to
simplify lives. Prior to Careem or other ride hailing apps, it was impossible to find a ride,
order food, or to pay money through an app.

Proposed Mission Statement

Our mission at Careem is to provide reliable, convenient, and affordable transportation
solutions to people around the world, while also creating opportunities for drivers to earn
a decent income and become their own boss. We are committed to delivering a high-
quality, seamless experience for our customers, and to building a sustainable and
responsible business that positively impacts the communities we serve. We believe in the
power of technology to transform the way we move, and strive to use it to create a better
future for everyone." This mission statement reflects Careem's focus on providing
transportation solutions, improving the lives of its drivers, delivering a high-quality
experience for customers, and using technology to create positive change. It also
highlights the company's commitment to sustainability and responsibility
 Competitors and Differentiation

 Careem’s product differentiation strategy involves collaborative ventures, the

establishment of a localised database, call centre services, and the adoption of
the locally accepted payment system.
 Careem utilises a product differentiation strategy to strengthen customer,
employee, and driver loyalty, enhancing the company’s sustained growth and
expansion.
 Careem has around 48 million enlisted clients on a solitary stage and offers
various services, for example, taxi booking, meals, grocery conveyance,
payments, bike sharing, and intercity travel.
 Careem has acquired customer trust through service responsibility. The
organisation has laid out call habitats and online stages for rapidly answering
customer needs. Service responsibility is the organisation's main goal of offering
premium quality assistance.
Competitors and Differentiation
(Continued)
 Recently the government has inaugurated the metro busses as well as
red bus services in Karachi
 InDrive entered the market due to low barriers with its new
differentiated offering where the customer has the authority to set
and negotiate the fare with the captains for the ride instead of just
accepting whatever the captains are asking for.
 Uber did marketing wars at fist but then ultimately acquired Careem
so now they’re one unit functioning separately
 The InDrive app makes money by taking a percentage fee for every
transaction that is facilitated via its platform. The company operates
under a market place business model.
 PEST-C Analysis
Political
Opportunities
People shifting to ride hailing apps because of high fuel prices due to political un-
stability
Bad road infrastructure and no building of new roads makes it unbearable to
drive regularly
The buying power has gone downhill making it impossible to afford a car (But
they can use a one time Careem to fulfil their needs)
Threats
Political unrest and worsened economy will force people to use public transport
Careem also has to raise prices with hike in fuel prices
Regulations (including licensing requirements and rules around insurance and
safety)
Lower margin of Careem drivers
Legal Battles
Metro & red bus service
 PEST-C Analysis (Continued)
 Economic
 Opportunities
 Pakistan is a fuel based economy (The higher the prices the more shift towards alternatives)

 Lower buying power leading to un-affordability of fuel and personal transport options

 Carpool Options

 Earn extra cash by enrolling as a captain

 Employment opportunities for taxi/Rickshaw/bike drivers

 Threats
 Economic crisis

 Diverse challenges from established players in the market

 The value of Rupee is falling

 Availability of other options in terms of better pricing

 Fluctuating fuel prices

 Lower expansion into new markets

 PEST-C Analysis (Continued)
 Social
 Opportunities
 Brand Name

 More modes of transport

 Role of internet in the lifestyle attitude shift plays in favour of Careem

 Cost saving lifestyle of people

 Younger tech savvy generation

 Positive online reviews

 Environmental impact to be lowered by adaptation of electric cars

 Threats
 Cultural Limitations

 Social Differences

 Protests by locals on wages

 Irrational behaviour by captains and customers

 PEST-C Analysis (Continued)
 Technological
 Opportunities
 Super App

 Seamless user experience

 Diversified offerings (Careem pay, groceries, etc.)

 Real time online customer support

 Threats
 Negative social media reviews

 Anti social media platforms

 Hackers

 Database loss

 Me-too
 PEST-C Analysis (Continued)
 Competition
 Opportunities
 Positive competition among rivals

 Careem has a diversified portfolio

 More market penetration

 Bigger market share by Careem

 Threats
 Marketing war by competitors for market penetration

 Content creators who worked for areem are now working for the competition

 Lesser customer retention due to better fare offers

 Porters 5 forces

1. Competitive rivalry
Competition from both local and international players (Uber, InDrive, Bykea, Metro,
red bus). The intense competition leads to price wars and other forms of aggressive
marketing in an effort to attract and retain customers, alongside dealing with the
government, local operators, global players. Low level of loyalty with customers.
Careem is now collaborating with other interested firms such as the Cricket League,
content creators, etc. who promote charity works which have positively positioned
Careem in the minds of the consumers.
 Porters 5 forces (Continued)

2. Bargaining power of suppliers

The bargaining power of suppliers in the ride-hailing industry is low. Careem relies on a
network of independent contractors to provide its services, rather than employees. This
means that the company does not have a direct relationship with its drivers and does
not have to negotiate wages or other terms of employment. It is known that the fewer
the suppliers, the more the bargaining power of suppliers. That is exactly the case with
Careem. Considering Careem captains to be the suppliers, the fewer riders in one
location, the more pressure on Careem to offer incentives for riders to be present in
that location. For this, Careem introduces an automated ‘Peak’ system that incentivizes
riders to go to farther locations in exchange for a higher fare.
 Porters 5 forces (Continued)

3. Bargaining power of customers

The bargaining power of buyers in the ride-hailing industry is moderate. While consumers
have a range of options to choose from, they may not have significant bargaining power
due to the lack of transparency in pricing and the limited ability to negotiate fares.
However, the presence of multiple ride-hailing companies in a given market may increase
the bargaining power of buyers where the biggest competitor InDrive comes into play
with its transparent pricing. As for deciding the price, customers do not have much of a
choice because the fare is decided on a per-kilometre basis. However, if customers realise
that the average Careem ride is more expensive than X competitor, they can easily switch.
Hence, there is an underlying bargaining power of the customer since there have been a
couple of new entries in the market recently such as InDrive, metro bus, red bus, etc. who
offer very competitive prices as well.
 Porters 5 forces (Continued)

4. Threat of new entrants

The threat of new entrants in the ride-hailing industry is moderate to high,
depending on the region. While it is relatively easy for new companies to enter the
market, they may face challenges such as the need to obtain licences, build up a
network of drivers and vehicles, and establish a brand presence. Careem's strong
brand recognition and reputation in Pakistan may make it more difficult for new
entrants to compete. Careem’s biggest competitor Uber bought them out, they get
to decide the pricing on both platforms. However, the threat of new entrants is not
zero and new entrants are coming into the market. Low barriers to entry in the
transport business have positively stimulated the growth of the industry. The
barriers to entry are absolute cost advantage, economies of scale, and a huge
amount of funding which Careem came up with to gather a customer base by
offering huge discounts initially.
 Porters 5 forces (Continued)

5. Threat of substitute products or services

The threat of substitute products or services in the ride-hailing industry is moderate
to high, depending on the region. Consumers may choose to use alternative modes
of transportation, such as public transportation, private car ownership, or taxi
services. However, the convenience and cost-effectiveness of ride-hailing services
may make them a preferred choice for many consumers. The biggest competitor to
Careem has been Uber and now that Uber has bought them out, the current
competitor to Careem’s ride-hailing service is InDrive. The biggest competitor of
Careem’s food delivery is food panda. The threat of substitutes is high for Careem
ride-hailing service because Pakistan is a highly price-elastic country and being
offered a better price on another platform will result in customers choosing that
platform over Careem.
PORTERS 5 FORCES MODEL
 EFE MATRIX
R(1-10) WT RATING WS
OPPORTUNITIES 8 0.06 3 0.18
1. Usage of smartphones and internet is growing on
national basis
7 0.05 2 0.10
2. Currently, careem operates in 22 cities of 8 0.06 2 0.12
Pakistan that can use market development
strategy to expands its market
7 0.05 3 0.15
3. Diversifying business (grocery, food etc) 7 0.05 2 0.10
4. Part time riders/drivers 8 0.06 3 0.18
5. Carpooling concept
6. Uber have acquired careem, creating 8 0.06 3 0.18
oppurtunities for both companies to rapidly
expand and capitalize
8 0.06 3 0.18
7. Positive reviews
8. No of social media users are increasing

THREATS 8 0.06 3 0.18

1. Low barriers of entry in the market 9 0.07 2 0.14
2. Inflation
3. Hike in fuel prices
9 0.07 2 0.14
4. Substititues 8 0.06 2 0.12
5. Increasing competition 8 0.06 2 0.12
6. Simple business model threaten careem 7 0.05 2 0.10
sustainable growth and expansion
7. Local bodies 7 0.05 3 0.15
8. Negative reviews 8 0.06 4 0.24
9. Data base loss 7 0.05 4 0.20

TOTAL 132 1.00 2.58

 Comments: Since, Careem has the
highest score i.e., 3.17, therefore, it has
the best performance in the overall
industry.

Recommendations: Careem should look

into their driver’s payment gateways as it
has posed a problem a couple of times

CPM since they have had issues and as a result

posed a threat to Careem’s on ground
fleet. Alongside, they should also look
into their fare payment options given
that the competitors use a fare
negotiation method that encourages the
customers in the overall liking and
satisfaction towards the ride hailing
application. Since the customer loyalty is
very low Careem should also look into
different loyalty options so as to make
the customers loyal and not shift from
one platform to another.
 Organizational Culture
Careem made sure that the company's mission and vision are the foundation of its internal
culture.

It first encourages a culture of ownership

The company is very transparent and shares everything with them.

 IFE MATRIX

Weighted score: The weighted score of Careem is 2.36 which is just above average
 Recommendations
• Instead of charging for waiting time separately, Careem could set its fare fixed at the time of

booking like its rivals to ensure that customers know what to expect when the ride is

finished. Customers are annoyed by additional fees because they booked their ride at a

different price. (W1, W3)

• Additionally, they must to promote their rides more frequently to draw passengers even

during rush hour.(W1, W3)

• Monthly packages could also help attract more users. (W1, W3)

• In general, the business should concentrate on developing innovative concepts to fix defects

and increase efficiency so that its ideas are difficult to copy. (W1, W3)

• Responding more promptly to the online negative reviews. (W1, W3)

GENERIC STRATEGY
 Current Strategies

 Careem decided to exit the food delivery unit and cut down on costs.
 Careem and JS Bank collaborated to introduce and provide subsidized loans to Careem Captains.
 trying to enter mass communication to reach large audience via media.

Proposed Strategies
 To introduce the carpooling concept in the ecosystem.
 To diversify its business unit portfolio.
 To introduce and normalize other payment options such as bank transfers instead of only cash.
CURRENT STRATEGIES VS. PROPOSED STRATEGIES

INTENSIVE STRATEGIES

 Market penetration: They have frequent joint ventures that give them a bigger audience and an edge over their
competitors. The launch of media campaigns and ads is also an attempt to increase market share by better
marketing efforts. Recently, they have merged with uber too which is an attempt to increase the market share
as well

 Product Development: Careem has been focused on improving their super app by experimenting with new
technology and services for their existing market.

 Diversification: Careem plans on building an ecosystem for their customers so that they don’t have to go
anywhere else for services. That being said, they plan to do fintech, ride-hauling, e-commerce etc. They have a
multi functioning application which is not limited to just ride-hauling which is the service they started off with. It
has already been implemented in Dubai and most probably will be launched in Pakistan in 2023
 SWOT MATRIX
STRENGTHS WEAKNESSES
1. Profit margin by inDrive
1. Readily available cars 2. Limited global expansion
2. Verified drivers 3. Decline in revenue
3. Flexible working hours for the captains 4. Idea can be easily imitated
4. Safer than public transport 5. Low customer loyalty
5. Brand image 6. High fares
6. Wide geographic presence 7. Regulatory challenges
7. Good customer service 8. No specific training for captains
8. Diversified categories in one app 9. Delayed weekly payouts
9. Seamless user experience 10. Recent strategy implementation of strategies.
10. Careem corporate fleet( engro,affinity,biggest client)
11. Gives ownership to clients

OPPORTUNITIES THREATS
1. Low barriers of entry in the market.
1. Usage of smartphones and the internet is growing on a national 2. Inflation
basis. 3. Hike in fuel prices
2. Currently, careem operates in 22 cities of Pakistan. That can use 4. substitutes
market development strategy to expand its market. 5.  Increasing Competition
3. Diversifying business (grocery, food, etc.) 6. Simple business model threaten sustainable growth and expansion.
4. Part-time riders/drivers/employment opportunity 7. Local bodies
5. Carpooling concept 8. Negative reviews
6. Uber has acquired careem creating opportunity for both companies 9. Database loss
to rapidly expand and capitalize.
7. Positive reviews
8. No of social media users are increasing.
SO WO
• Flexible working hours can help to expand the • Using carpooling system to manage high
business(cities, market share). (S3,O2) fares(W6,O5)
• Carpooling can be widely used as a safer • diversifying business will increase company’s
alternative to public transportation. (S4,O5) revenue.(W3,O3)
• flexible work schedule, it provides some people • profit margin can be increased by diversifying
with an additional employment opportunity business( W1,O3)
which create a shared value(CSV) for a company.
(S3,O4)
• Careem brand image can work very well in
growing diversifying business(S5 ,O3)

ST WT
• Using brand image to toggle new entrants(S5,T1) • working on high fares will decrease the price
• Widen geographic area can increase growth and competitiveness of inDrive (W6,T5)
expansion of the business.(S6,T6) • working on reviews will increase customer
• Brand image can be used to work against loyalty (W5,T8)
competitors present in the market.(S5,T5) • Avoid delayed payouts will stop captains to
• More detailed driver verification will reduce become local bodies(W9,T7)
unfavorable reviews, which will eventually
impact brand image.(S2,T8
BCG MATRIX

• According to the
BCG matrix,
careem lies in
the STARS
quadrant
IE MATRIX
IFE: 2.7
EFE: 2.58

Careem  lies in the 5 th quadrant of the

IE matrix which means that Careem
should focus on market penetration and
product development.
The best option for Careem is to go for a
market penetration strategy. Careem
can work on 

• Increasing marketing investment

• Competitive pricing
• Acquiring competitors
• New product and features
The Grand Strategy Matrix:
Continued
Market Penetration
 Enhanced marketing activities
 A flexible working hours policy will increase the supply side
Product Development
 Carpooling Service
 Will serve price-conscious customers
 Increase the value of their offering
Related Diversification
 Diversify for catering to sub-niches
 Competitive edge in easy-to-imitate industry
QSPM

Strategy 1
 Flexible working hours would expand the business and create employment
opportunities for part-time captains.
 TAS = 1.57

Strategy 2
 Introduce a carpooling system as it is safe and cheap. 
 TAS = 2.78