Careem : The Emirati super-app that has conquered the VTC market
In a world ruled by numbers, there are 86 billion neurons in the human brain, 5.33 billion Internet users across the planet and 903 kilometers between Abu Dhabi and Riyadh. Careem's figures reflect a major increase in access to local services in the Middle East. In 2022, the platform will count 505,856 hamburger deliveries, 97 million journeys made and more than 621,000,000 miles covered. Operating in over 100 cities and 12 countries in the Middle East, Africa and South Asia, Careem has proven its value and efficiency. From Careem Now to Careem Pay, the start-up covers every conceivable sector to satisfy demand. In 2019, the platform even tried its hand at bike-sharing with Careem Bike for the most eco-responsible users.
Careem and Uber: a fruitful meeting for the two VTC leaders
The potential of the technology company has not escaped Uber's notice. The prospect of a close collaboration with the Emirati app could well breathe new life into the Californian platform's ambition to take the lead in every major region. Indeed, although the VTC giant dominates the American and European markets, its presence in other parts of the globe remains erratic. In each local market, Uber often has to compete with several other digital platforms affiliated to the same sector.
On the eve of its IPO in 2020, Uber decided to buy Careem for $3.1 billion. In making this strategic acquisition, Uber agreed to give Careem more freedom, encouraging it to shape its own strategy to capture the market through a more sophisticated understanding of local demand. This shift has paid off. One year after the acquisition of Careem, Uber takes the lead in the Middle East mobility sector, with over 65% market share. With the rapid evolution of that field, merging the strengths of these two players could offer economies of scale, efficient expansion and service diversification.
“Improving the lives of users and creating jobs”: Careem's mission, everywhere and for everyone.
Careem has come a long way since it was founded in 2012 ! Careem was originally the result of an American-Pakistani and Swedish collaboration. Mudassi Sheikha and Magnus Olsson, former McKinsey consultants, joined forces with a clear goal in mind: to improve the lives of users and create over a million jobs for regional talent within the next ten years. The challenge has been brilliantly met. Since its creation, Careem has provided a source of income for more than 600 engineers and developers - who are working hard to perfect the app's learning models - as well as 2.5 million drivers, many of them Saudi.
The VTC company has indeed proved receptive to the call for female emancipation, proclaimed on June 24, 2018 in Saudi Arabia. At a time when the kingdom's female citizens are getting official permission to take the license, the VTC company, for its part, is starting to set up training specifically for future captains. “It's an important step” says Sarah Algwaiz, Director of Careem's Women's Program (referring to the reform). “For women, driving their own car marks the beginning of their financial independence and a real gain in autonomy…”
“For women, driving their own car signals the beginning of their financial independence and a real gain in autonomy.”
Sarah Algwaiz, Director of Careem's Women's Program
From a business point of view, the female workforce is also of financial interest to Careem. In a traditional society where many women are apprehensive about being alone in a man's car, the Capitanah option (feminine for Captain in Arabic) offers a reassuring alternative. Female users can click on the icon of the same name to allow the algorithm to filter out male drivers. According to spokesperson Murtadha Alalawi, thirty women had already signed up for the first recruitment session in the eastern city of Khobar. On the strength of this promising start, the start-up is now aiming to gather over 100,000 female drivers in order to attract new customers in the Saudi kingdom.
Careem's next geographical and educational perspectives
Careem continues to expand the spectrum of professional opportunities for local drivers. Since 2018, the VTC platform has extended its service area to the West Bank, giving the three million Palestinians living there the chance to find sustainable, flexible employment. This entrepreneurial bulimia has no end in sight. In its race to innovate, Careem has launched Careem Next Gen, a program designed for junior engineers from Pakistan, Jordan and Egypt. Its aim: to prepare the next generation of entrepreneurs to take up the baton.
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