Dubai-based transportation network company, Careem, the ride-hailing king from Morocco to Pakistan, was the leading app-based car service in the Middle East and North Africa region (MENA)

Dubai-based transportation network company, Careem, the ride-hailing king from Morocco to Pakistan, was the leading app-based car service in the Middle East and North Africa region (MENA). The company’s success grasped lessons for Western startups with global ambitions. The two ex-McKinsey & Company management consultants (Mudassir Sheikha & Magnus Olsson) co-founded the company and began it 2012 in the month of July by offering car bookings for everyday use for corporate through its website-based service. It was operated in more than 120 cities in 14 countries across the MENA region and had over six million customers and a network of 150,000 drivers.

The company became the region’s largest ride-hailing platform and success was down to a combination of a head start over local knowledge, home-field advantage and Uber. The app of the company eliminated the struggle of finding a cab on the street. With just a few taps within the app passengers were connected with drivers for a fast and safe trip.


The company had raised over $421 million in funding & continues to add exciting services to the app like Careem for Women, Careem for Kids, and monthly bookings, unheard of by other taxi services. Although both Uber and Careem were often more expensive than traditional taxi services, the convenience was what drew and build their customer base. They focused on quality customer service and an easier experience for users in order to keep their riders returning. Uber and other taxi service providers were competing fiercely with Careem in the MENA region. The road for the company will be not easy due to changes in the transportation industry.

Questions:

Q1. Do Porter’s five forces analysis on Careem and suggest your strategy to help the company in facing the cut-throat competition.

Q2. Prepare a SWOT Analysis report of the company.

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Answer

Q1. Do Porter’s five forces analysis on Careem and suggest your strategy to help the company in facing the cut-throat competition.

Q2. Prepare a SWOT Analysis report of the company.

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