Tough Competition Between Careem Pakistan and Uber in Pakistan

Tough Competition Between Careem and Uber in Pakistan

It’s not been long since Pakistan became part of global markets of private Taxi companies. As the Dubai-headquartered Careem taxi launched their services in mid-2016. Careem Karachi rival in the market Uber car service followed soon and came to Pakistan in March. As in any other business, the battle between the two heavyweights is at its peak. While Uber Pakistan claims that among all its other markets Pakistan is the fastest growing market for them. On the other hand, Careem Pakistan says that their profit is booming as growing at an average of around 50 pc month-on-month.

Keeping the poor state of public transportation and infrastructure of Pakistan in mind. It is not hard to believe that these companies are making huge profits as Careem taxi Karachi claims. More and more people are using these private cabs by Uber and Careem. Not only because they are fast and easy to take. Matching rates that roughly match the other public transports such as rickshaw and other private taxis. It is also important to mention here that Uber drivers are more or less forced to take up rides for as long as 18 hours in a day. Hence the profit for the company.

However, what is even more important is that both of the companies, Uber and Careem, have so far stayed in large urban cities. Following almost the same strategies. Careem taxi service operates in three urban cities which are Karachi, Lahore, and Islamabad. Uber taxi, on the other hand, is operating in Karachi and Lahore only. It still remains unclear if Uber plans to launch its services in the Federal capital.

Careem car, however, has planned to expand its operations further. Moving to other cities such as Hyderabad, Faisalabad, Gujranwala, Peshawar, and Multan. According to the census of 1998, the total population of these combined is more than 6.5 million but the dynamics of the population have changed significantly over the decade.

As with any other business, Uber Pakistan and Careem pakistan car are trying to fix and hire as many drivers as they can. In order to expand the operations and hence the profits. Uber maintains that in Lahore the company has more than 1000 active drivers. However, there are troubles building up for the company. According to the reports in local media, a large part of those minting profit from Uber’s entry in Pakistan were previously high-class owners. It was also said that these big shots are reportedly forcing their drivers to drive for as long as 18 hours in a day. Making them huge profits. While these drivers salary is as less as PKR.25000.

Uber, on the contrary, is not keeping in touch with the uber car drivers. The management of the company seems to be not functioning at all. As alarming stories of harassment are even rising. Careem Pakistan, on the other hand, is managing to keep check and balance. Going the word of the mouth, it can be said that Uber is being outdone by Careem Pakistan in every aspect. Let it be the number of active drivers or the quality of services. A data from Similar Web furthers this argument as it suggests that Careem Pakistan remains the larger of the two companies in Pakistan based on the number of times the application was installed.

Careem Pakistan is around 25 to 30 percent more expensive than Uber. However, it looks like the people in Pakistan are willing to pay more. As a result, they want premium experience and quality services.