Careem Business Model

Group Members= Haider Ali, Eitzaz Haider, Aliya & Muhammad Sajjad
Instructor = WARISHA BOKHARI
Topics

• Careem History
• Careem Business Model
• Features of Careem App
• Careem’s Revenue Model
• Careem Rewards System
• Direct Competition To Uber in Middle East
• Sepcifications & Technology Used
• Cost To Develop Careem like App
• Conclusion
 Careem History

•Careem is a local on-demand app-based car booking startup like Uber. The app was developed to fulfill the
basic ride necessities of those travelers who were not able to find any ride booking solution easily.

•The company began its services as a web-based service for corporate car bookings and transformed into a
company with car hire for routine usage.  During the initial days of launch, pre-scheduled bookings were
offered, so that they get a good time to appoint and arrange a cab for users. The users were mainly those
from firms that require a lot of traveling.
 Specifications & Technology Used

Admin : Laravel Framework, PHP, HTML5, CSS3

User: Java, Swift

Server Requirements of Careem

1. Operating System – Linux

2. Web Server – Apache
3. Database – MySQL
4. PHP – 7.1
5. Ability to Setup Cron Jobs
Careem Business Model

• Careem’s business model consists of three modules which include:

• 1. Driver/Captain App
• 2. Passenger App
• 3. Admin Dashboard
Driver/Captain App

• The captain will use the app to receive cab bookings and earn money. Here
are the steps to register as a Driver:
• 1. Register your details at drive.careem.com
• 2. Complete our Captain training
• 3. Download our driver app 
• 4. Accept your first trip, and you’re already on your journey to earn money
• 5. The cab booking service is available 24/7 in major cities around MENA,
Pakistan, and Turkey, such as Dubai, Lahore, Karachi, Riyadh, Jeddah,
Cairo, Beirut, Islamabad, Istanbul and many more.
Passenger App

• The user will use the app to book a cab as per their convenience. It can be booked for
daily commuting pr can be scheduled for later.
• 1. Download the app. Our GPS ninjas will automatically pick up your location more
accurately than a cab.

• 2. Pick your car type and choose ‘Ride now’ or ‘Ride later’ depending on when you
want to get going. A more flexible option than a taxi.

• 3. Choose your dropoff location for a fare estimate.

• 4. Tap ‘YALLA!’ and instantly get a confirmation instantly, complete with your
Captain’s details and location.
Passenger App (Continue)

• 5. Track your ride in real-time. Then just get in, sit back and
relax. You only pay after the ride is complete. 

• 6. While booking the ride you can opt for either pay via credit
card or cash payment. In the case of credit card payment,
payment will be automatically deducted by the Careem and if you
opt for cash payment, you will have to hand it to the driver at the
end of the ride. After the end of the ride, you can rate the service
of Careem as well if you want to give feedback.
Admin Dashboard

• The admin dashboard lets super admin to manage the drivers,

cabs, reviews, dashboard and much more.
First research area
Group member name
Features Of Careem App
 Careem’s Revenue Model

•Booking at Careem can be divided into 3 basic categories:

1. NOW
2. LATER
3. REPEAT (Same booking for every day within a prescribed period).

•Now for each booking/trip, the basic payment options are:

1. Cash
2. Credit Card
3. Invoice
4. Credit in Wallet (Same as Cash)
Careem’s Revenue Model (Continue)

•This is absolutely true that Careem has a certain percentage in

every trip fare and a person can wonder about the procedure
through which a Captain can return that amount to Careem. Captain
can see his earnings through his portal where all the credit and debit
entries are stored.

Cash Trips = Captain needs to pay Careem

All other trips = Careem needs to pay Captains.
 Careem’s Revenue Model (Continue)

More than 90% of the bookings are NOW bookings in the region where Careem
operates and the majority of them are Cash bookings. This means that in almost
all of the cases, it would be Captain who’d be owing Careem. Now Careem wants
that cash as well, right? There is a cash blocking limit, which when breached,
would block the captain till the time he repays back to Careem. This ensures that
the cash flow is both ways, and Careem gets its share of the earnings.
Second Research Area
Group member name
 Careem Rewards System

The best part of Careem’s rewards system is that there is no sign up required and
users can earn points on every ride. 
 Careem Rewards System (Continue)

Rewards and Benefits:

1. Get Free Rides

2. Give a helping hand to others
3. Do a charity or donation 
4. Feed a child
5. This can be done in a single tap and one can explore the world of more rewards
from Careem.
 Careem Rewards System (Continue)

Careem Gold Rewards

Once you are upgraded to Careem gold, you will get some additional
benefits which include:

1. Bonus Points
2. Exclusive offers
3. Priority Support
 Careem Rewards System (Continue)

Business Verticals of Careem

Being a super app, Careem is not limited to cab booking service only, it has expanded
its verticals in 

1. Food
2. Delivery Services
3. Seamless Payments
4. Bus Service Availability
5. Business Travelling Rides
 Careem Rewards System (Continue)

Business Verticals of Careem

Being a super app, Careem is not limited to cab booking service only, it has expanded
its verticals in 

1. Food
2. Delivery Services
3. Seamless Payments
4. Bus Service Availability
5. Business Travelling Rides
 Careem Rewards System (Continue)

As aforementioned, this super app’s sole aim is to heal the pain point of people, which
is why it offers more than just a cab booking service. One can either get on-demand
food, get some stuff delivered right at their doorstep, do some serious payments and
much more. This is the reason, it is named as a SUPER APP and we can call it a One
Stop Solution for all the on-demand needs.
Third research area
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 Direct Competition to Uber in the Middle East

With the huge fame, this app has gained in a few years, it has become a direct
competition to car-booking giant Uber, especially in the Middle East. The app has given
a tough time to Uber by generating millions of revenues in the taxi booking business.
However, Uber found its ways and made a deal with Careem to acquire it in  $3.1
billion, in order to cover the Greater Middle east market and become a Super App. The
deal is expected to be closed in early 2020, where Uber will acquire Careem’s
mobility, delivery, and payments business across the greater Middle Eastern region,
which includes operations in Egypt, Jordan, Pakistan, Saudi Arabia, and the UAE.
 Cost to Develop Careem like On-Demand Super App

The cost to develop a taxi booking app like Careem will be based on the following
factors:

1. Your Needs
2. Requirement gathering
3. Your App Idea + Platform requirements
4. Technology Used
 Cost to Develop Careem like On-Demand Super App

A taxi app like Careem will cost you between $4,000 to $20,000. However, it totally
depends on the solution you choose. 
1. If you go with ready to launch and Minimum Viable Product, then the cost can be up
to $5000.

2. For a mix of readymade + personalized solution, the app cost idea ranges in
between $10,000-$15,000

3. For a completely customizable solution, where everything  is done from scratch, will
cost in between $35,000-$50,000
Conclusion

• Hence we believe Careem is a winner because it’s operating model is very

well aligned with the context of Middle East and its business model. It has
identified exact pain points in the Middle East and has turned them to its
advantage. This is why Uber who is trying to copy their US model has not
been successful in the Middle East yet and I don’t think they will in the
future if they don’t adapt to the local needs. Like eBay couldn’t succeed in
China due to the strong foothold of Alibaba. Though adapting to local
needs, I think, does not work with Uber’s business model which is to grow
and expand extremely quickly by replicating their model in multiple cities.
Hence, they can’t keep tweaking it in individual cities as its very time and
effort intensive and does not scale fast like the current lean team city
launch model.