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Careem Pakistan

360 degree strategical analysis of careem Pakistan, what are the current strategic issues and proposed strategies for future growth by applying all framework.

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Sana Ambreen
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626 views

Careem Pakistan

360 degree strategical analysis of careem Pakistan, what are the current strategic issues and proposed strategies for future growth by applying all framework.

Uploaded by

Sana Ambreen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Pakistan

By:
Zoha Nadeem
Sundus Anwar
Ahtasham Hameed
About Careem Pakistan

 Careem came in Pakistan in 2015


 An application
 Firstly, people from Rent-a-car were requested to join the platform
 Later on sessions on social media attracted more captains
 Operates on fixed price
 A platform that connects passengers to the captains (drivers)
About Careem Pakistan

Passengers Careem Captains


About Careem Pakistan

 Target Customers
 People who value time
 Smartphone Users

 Vision Statement
Careem’s vision is to be the largest mover of customers and things in
Pakistan, Middle East, North Africa and Turkey.
Industry
 Internet based transportation network

Products
 Application
 A platform for drivers(captains) and customers to interact.
Competitors

 Uber
 Rickshaw Chacha
 Taxi Cab
Coverage

 Lahore
 Karachi
 Islamabad
 Hyderabad
 Faisalabad
 Multan
 Gujranwala
 Peshawar
 Sialkot
External Issues

 In January, 2017 the Punjab government sent a notification to the Punjab


Transport Authority to ban the ride hailing services.
 Protest from traditional taxi drivers
 Complaints from customers regarding safety issues
Internal

 Careem is contributing towards Women Empowerment by increasing the


number of female captains.
 Careem captains are unhappy due to some Careem policies and they carried
out protests for their rights.
Financials
Islamaba Faisalaba Abbotaba Hyderaba
Karachi Lahore d d d Sialkot d Multan Peshawar
Average
Fare per
day 250 220 170 170 125 135 220 150 150

Avg Rides
per day 10 10 10 10 10 10 10 10 10

No of Cars 6000 4000 3000 1500 700 500 1000 800 900

Revenue 15000000 8800000 5100000 2550000 875000 675000 2200000 1200000 1350000
45000000 26400000 15300000
Monthly 0 0 0 76500000 26250000 20250000 66000000 36000000 40500000
54000000 31680000 18360000 91800000 31500000 24300000 79200000 43200000 48600000
Annually 00 00 00 0 0 0 0 0 0
Competitive Advantage

 Keeps comprehensive background check on its captains through


Pathfinder Group, for the safety of their customers.
Current Strategy

 Market development in Pakistan


 Planning to expand in 30 cities in the next 5 years.
Problem Statement

 The traditional taxi drivers are continuously posing a threat for the
growth of Careem. Pressure from Traditional Taxi drivers leads to
additional laws and policy implications for Careem.
SWOT Analysis - Strengths

1. Low fixed investment makes it easier for Careem to expand its network
nationally.
2. Better condition of vehicles leads to more users, as 70% of the users (from
both Karachi and Lahore) prefer Careem’s vehicles than Uber.
3. Well designed and user friendly app of Careem gave better response from
customers than Uber.
4. Careem raised $350 million due to its low operational costs and good brand
image; it helped Careem to maximize their financial benefits.
5. Comprehensive background check on captains is the unique feature that brings
customer trust; therefore 74% of users prefer Careem over Uber.
6. Careem’s discount and promotion offers attract more customers than Uber.
SWOT Analysis - Weaknesses

1. The company cannot have a full control over maintaining their image, as the
image of the company depends on the driver's’ conduct with the customers.
2. Careem is less more popular due to less availability of drivers in Pakistan than
Uber.
3. Careem has higher fare cost than Uber, therefore, price sensitive customers
prefer Uber over Careem.
4. Necessity of smartphones limits Careem’s reach to its potential target market.
5. Local areas of some cities are not shown properly on the maps, which lacks
the navigation abilities.
6. Careem’s brand reputation was affected due to protests by Captains in Karachi
and Lahore.
SWOT Analysis - Opportunities

1. Increase in number of Careem Drivers, which can increase the Careem’s


revenue and reduce the estimated time of arrival.
2. Cheaper electric cars can be used. It will reduce the cost and increase the
driver’s and Careem’s profit margin.
3. Additional services like food or Parcel, Courier Delivery Service can be offered
like Uber’s.
4. It can exploit new markets in developing regions, where taxi services are
inconvenient and expensive or doesn’t exist yet.
5. Cab services are more time taking so customers are mostly dissatisfied,
therefore Careem have a target market blooming in Karachi, Lahore and
Islamabad.
6. It can offer special transport for handicapped and physically impaired people
(Special seating and other arrangements).
7. Emergency Medical Transfer service with high roof vans as ambulance can open
up another market for Careem.
SWOT Analysis - Threats

 1. Traditional taxi drivers are hindering the growth of Careem.


 2. Low-profits margin can discourage the drivers to join Careem, leading to
lesser drivers than before.
 3. Increasing competition from Uber could lower the prices and then
ultimately the profit margins.
 4. More Captains would mean more chances of frauds and scandals, which can
damage the public relations and image of Careem.
 5. Problems with local authorities can lead to fines, which can create bad
image and Public Relations.
 6. There are low barriers to entry in this market, so the idea can be copied
easily.
 7. New competition entering the market, iCab Pakistan, which provides
services which is being ignored by Careem for example Medical Transfer
Services.
Porter’s five forces

 Power of buyers (Medium)


 Less options for customers
 Customers can not bargain
 Threat of new entrants (High)
 Low barriers to entry. Idea can easily be copied
 Power of Supplier (Low)
 Careem can easily hire captains.
 Captains have less bargaining power for commissions.
Porter’s five forces

 Industry Rivalry (High)


 Direct Competition from Uber.
 They compete upon pricing, rider’s services, security,
convenience and comfort.
 Threat of substitutes (High)
 Public transportation, private transportation vehicle and
motorbikes
 Taxi services
The Input Stage – EFE Matrix

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