How Careem Went From Being The Leader In Taxi Services In Pakistan To Nothing

June 7, 2024Zayn0

Pakistan ranked as Careem’s top market in 2022, the year it declared that its app had completed its billionth ride. In Pakistan, where the Careem app was widely used for ride-hailing, about 30% of the service’s billion rides originated. Despite having its headquarters in Dubai, Careem was frequently mistaken for a Pakistani company in media headlines and social media posts since its co-founder and CEO, Mudassir Sheikha, comes originally from that nation. Here are the details of the downfall of Careem.

Arrival of InDrive and Yango

In this brief time, inDrive and Yango, two recent arrivals, have completely taken over the ride-hailing market in the fifth most populated country in the world, with Careem trailing far behind.

Careem Data Analytics

According to data analytics company Data.ai; Careem now has just 373,920 daily active users in Pakistan, while inDrive has over 2 million users. Over the previous two years, the corporation has also closed its digital payments and food delivery services in Pakistan.

Shifting Priorities and Profitability Concerns 

Pakistan is no longer a top market for Careem, according to both current and former workers. Pakistan is unlikely to provide enough money to be truly profitable for Careem due to the low value of the rupee. Consequently, the business has been refocusing on areas where it may generate more profits.

Competition with Models Based on Offers 

In reaction to the success of its rival inDrive, which offers cheaper fares through a bid-based system, Careem developed the Flexi Ride model. Although customers have embraced Flexi Ride, some drivers are wary of the model and would rather use Careem’s former system, which displayed fares up front and had a strong support network.

Interacting With Drivers 

Additionally, Careem has tried to interact with its drivers in Pakistan more by holding a live Q&A session and providing bonuses on holidays. However, many drivers believe that Careem is less appealing since there aren’t as many users as there are compared to competitors like inDrive, which have drawn in more customers by providing cheaper fares.

In Summary 

Careem’s difficulties in Pakistan serve as a reminder of how difficult it may be to hold onto a leading position in a market that is changing quickly and is very competitive, particularly when pressure from the macro economy is present.

Zayn

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