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INTRODUCTION

CAREEM
Careem is an Emirati 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 was valued
at over $2 billion as of 2018. In March 2019, Uber acquired
Careem for $3.1 Billion. As part of the deal, Careem maintains an
independent brand and operates separately.

ABOUT:
TYPE: Privately Held Company
INDUSTRY: Technology, Transportation Network Co.
FOUNDED: MARCH 2012, OCTOBER 2015 (PAKISTAN)
FOUNDERS: Mudassir Sheikha, Magnus Olsson, Abdullah
Elyas
HEADQUARTERS: Dubai
AREA SERVED: 100+ cities in the Middle East, Africa and
South Asia
PRODUCTS: Mobile Application
SERVICE: Ride-Sharing. Vehicle For Hire
ACCESS: Google Playstore (Android), Apple Store (iOS)

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IMPORTANCE
Ridesharing has exploded in popularity in recent years. In 2014,
1.1 million rides were being requested every week. Ridesharing
doesn't just provide a way for people to get from point A to point
B. It's changing the world for the better.

This guide is going to show you why you should be signing up to


a ridesharing platform from your computer or your phone.

1- It's Cheap!

One of the reasons why ridesharing managed to rise so


quickly is because of how cheap it is. On many routes, it's up
to 50% cheaper to travel by rideshare than it is to travel by
public transport.

Nowhere did this become more apparent than with Uber.


Taxi drivers all over the world have even launched legal
action because they claim that Uber is unfairly taking their
business away from them.

Ridesharing has made long distance travel more affordable.

2- Bringing People Close Together

Ridesharing is about so much more than an impersonal ride


to this destination or that. It's about creating real connections
between the driver and the passenger. Most rides will
usually have enough demand to fill a vehicle. This will lead
to up to four people having a relationship as they meet each
other and speak about their likes and dislikes.

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This happens on both shorter rides and longer rides. It's
making the world a better place because it's bringing
together people from lots of different backgrounds.

By bringing people closer together, it helps to break down


barriers and create open minds.

3- Reduces Congestion on the Roads

There's nothing more frustrating than trying to get


somewhere only to have a huge traffic jam to struggle with.
There are many reasons why this happens, but it's largely
self-inflicted. When everyone is driving a vehicle, the roads
can't handle so many people all trying to get to the same
place at the same time.

Congestion on the roads has been eased by people sharing


cars together. Before ridesharing really started to hit the
mainstream, governments and organizations were promoting
the benefits of ridesharing. But there are more benefits that
aren't confined to making it easier to get from one place to
another without congestion.

4- The Environmental Benefits

The world has to take a look at itself and consider what it is


going to do about the increasing effect of global warming.
The world is getting hotter and the environment is starting to
change. This is a direct result of the greenhouse gases
produced by vehicles like cars.

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Many cities have come up with solutions to improve air
quality. Some cities have even allowed only certain license
plates on the roads on alternate days.

One way you can contribute to saving the environment is


through ridesharing. If everyone could fill a car of four
people, this would mean four times fewer greenhouse gas
emissions. This would mean significant change to the
amount of greenhouse gas in the atmosphere and would
slow down the rate of warming.

Although there is no hard research to demonstrate the


precise effect ridesharing has had on reducing emissions,
the logic is clear.

5- Keeping People Mobile

Ridesharing, for many reasons, has liberated people. For


example, if someone is unable to easily get to a bus or train
station they may decide not to make the trip at all.
Ridesharing has the benefit of being able to transport people
to and from anywhere.

It keeps people mobile, and that maintains the flow of people


from place to place. As people meet with and connect with
others, they become more tolerant and less isolated. One
could easily describe ridesharing as the great social
dispersion agent of the decade.

How Ridesharing Differs:

There are many forms of ridesharing. Uber, for example, is


just like an alternative taxi services. Blablacar, on the other
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hand, is closer to hitchhiking, except you pay for it and the
ride is arranged in advance. It allows drivers who were going
to a destination anyway to take someone with them without
the high prices of public transport.

Ridesharing has changed the world in many ways. Many


people have become liberated and they have created
friendships simply through sharing a ride together.

It's safer than hitchhiking and more affordable than taking a


cab. All the signs point towards ridesharing continuing to
grow in popularity as it makes further inroads into the
mainstream. There's a strong chance that this will become
the way to travel going forward.

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MISSION AND VISION
CAREEM
The mission of Careem is to make people's lives simple all the
way through consistent, opportune and reasonably priced urban
transport. ... For the students, transportation is a very prominent
issue in each and every city.

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OBJECTIVES
In this report I will try to discuss different pros and cons of
Careem (A Ride Sharing Company) by implementing and
explaining the following Models.

 PESTEL ANALYSIS
 SWOT ANALYSIS
 PORTERS FIVE FORCES MODEL
 VRIO MODEL
 VALUE CHAIN ANALYSIS

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o PESTEL ANALYSIS
Political Factors:

 Government resource allocation and time scale


 Changing policies with new government
 Political stability in the existing markets
Social Factors:

 Education level
 Influence of Media on the public
 Demographics
 Societal norms and hierarchy
Environmental Factors:

 Extreme weather
 Paris Climate Agreement
 Recycling of energy
Economical Factors:

 Downward pressure on consumer spending


 Availability of core infrastructure
 Inflation rate
 Economic Cycles
Technological Factors:

 5G and its potential


 Dissemination of mobile technology
 Maturity of technology
 Latest technology and innovations
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Legal Factors:

 Data protection laws


 Health and safety norms
 Business Laws

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o SWOT ANALYSIS
Strength:

 Well recognized brand


 Operational cost is low
 Rating system
 Safety
Weaknesses

 Privacy concern
 Peak factors
 Limited drivers
 Bad complaint system
Opportunities:

 Government partnership
 Carpooling
 Mass public transit
Threats

 Uber’s entry
 Alternative apps
 New tax legislations

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o PORTER’S FIVE FORCES MODEL
1- Rivalry among competitors

 There are many rivalries emerging in this sector


 Cause of arising competitions

2- Threats of new entrants

 New “Ride-Sharing” services may be introduced


 Filling loopholes in existing services

3- Bargaining power of suppliers

 May switch to new ideas


 May set new revenue generation rules

4- Threats of substitute services or products

 mLift
 Local Taxis and Rickshaws
 Rasai, A-Taxi, Daewoo Cab

5- Bargaining power of buyers

o Users may buy own transport


o Discounts
o May switch to cheaper transport

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o VRIO MODEL
VRIO stands for – Value of the resource, Rareness of the
resource, Imitation Risk, and Organizational Competence. VRIO
is a resource focused strategic analysis tool. Leaders at
Innovation Process can use VRIO to build sustainable competitive
advantage by better understanding the role of resources in
Innovation Process’s overall business model.
The four components of VRIO used in Careem vs. the Ride-
Hailing Goliath are given below:

1- Valuable

Is the resource valuable to Careem Mena. The case study


follows the critical resources that are valuable to the firm -
financial resources, human resources, marketing expertise,
and operations management.

2- Rare

"Careem Mena" needs to ask is whether the resources that


are valuable to the Careem Mena are rare or costly to attain.
If they are not rare than both present competitors and new
entrants will easily able to get access to them and enter the
competitive landscape.

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3- Costly to Imitate

At present most industries are facing increasing threats of


disruption. According to the data provided in Careem vs. the
Ride-Hailing Goliath: Abraaj Journeys Further Into the Tech-
enabled Consumer Space. it seems that the core
differentiation of the Careem Mena is difficult to imitate. On a
broader scale – imitation of products of Careem Mena can
happen in two ways – Duplication of the products of the
company, and competitors coming up with substitute
products that disrupt the present industry structure.

4- Organizational Competence & Capabilities to Make Most


of the Resources

It measures how much the company has able to harness the


valuable, rare and difficult to imitate resource in the market
place. The exploitation level analysis for Careem Mena
products can be done from two perspectives. Is the firm able
to fully exploit the potential of the resource, or it still has lots
of upside.

Often the exploitation level is highly dependent upon


execution team and execution strategy of the firm. So
exploitation level is a good barometer to assess the quality
of human resources in the organization. Capabilities tend to
arise or expand over time as a firm takes actions that build
on its strategic resources.

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o VALUE CHAIN ANALYSIS
PRIMARY ACTIVITIES
1- Firm Infrastructure
 Finance and Accounting
 General management
 Legal services
 Quality management
 Planning

2- Human Resource Management


 Recruiting
 Training & Development
 Selection
 Hiring
 Skill Assessment
 People Planning and Compensation

3- Technology Development
 Android (Google Playstore)
 iOS (Apple Store)
 3G/4G/5G

4- Procurement
 General public
 Personal vehicles
 Full-timers
 Part-timers

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SUPPORT ACTIVITIES
1- Inbound Logistics
 To receive and store customer information for digital
media company (Users’ Bio)

2- Operations
 Using customer data to serve advertisements based on
usage behavior (Rating System)

3- Outbound Logistics
 Distribution network
 Hiring and assigning “Captains

4- Marketing & Sales


 Pricing
 Advertising and promotion
 Marketing
 Channel selection (Social Media & TV)

5- After-Sales Service
 Feedback requests
 Promotions offers
 Discounts

6- Margin
 Fare-Calculator
 Captain’s Commission
 Careem’s Commission

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o CONCLUSION

There is need to maintain healthy competition between


companies providing this service, which ought to be based on
non-price features such as customer service, security, etc, and
which should create an environment which allows for the entry of
new players in this market. The evolution of these companies
ought to happen in light of the findings in this report, feedback
from customers and civil society, and most importantly, in light of
the legal, ethical and social trends seen globally with regard to
privacy and the protection of personal data, the implications of
which extend much farther than just digital spaces, and have real
world implications.
PROS

 Flawless Mobile App & Web Portal


 Multiple Vehicle Options
 Reliable
 Facility for the public
 Job opportunities
 A new trend in 3rd World Countries
 Accessible

CONS

 Privacy issues
 Poor Complaint System
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 Price fluctuations
 Uncomfortable work-timings
 Weather conditions
 Misusage of Fare-Calculator

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RECOMMENDATIONS

To the Government
 Personal data protection legislation must be enacted
 Secondary check on driver credentials
 To conduct regular security audits

To Careem

 Regularly train and retrain all its employees in gender


sensitivity, customer dealing
 Must have local call centers, physical complaint offices
 Take strict action in case of complaints of harassment
 Run specific campaigns to encourage women to sign up as
drivers

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Thank
You
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