Uber-Careem Deal To Attract Significant FDI in Pakistan

Uber’s acquisition of Careem is expected to bring significant investment in Pakistan, Careem officials told ProPakistani.

The amount includes the investment value of employees’ stock options and shares, and other related assets of Careem in Pakistan.

The deal between the two ride-hailing companies has settled at $3.1 billion. Careem’s operations are spreading in different countries of the Middle East including Pakistan. According to the plan, Uber will take over Careem as its subsidiary however the company will remain functional as an independent organization.

Careem’s leadership is excited about its expansions in Pakistan as it is going to launch a bus service in the next three months aimed at different strata of the society for meeting their needs of commuting and traveling within the city and within the country, said Asad Haider Khan General Manager South at Careem during a recent media meet-up in Karachi.

Accordingly, customers will be able to book their seats in the buses through Careem’s App and reach their nearby stops at the given time.

Pakistan has immense potential despite the fact that the company is not making any profit from of its operations at present but continues to pour in investments in the emerging market.

Every month, the company gives millions of Rupees as bonus to its captains besides handsome subsidies on various promotional offers on rides, he added.

At the moment the company has not even achieved a break-even but its business indicators are very strong and sustainable.

The recent challenge is inflation which has drastically hit the purchasing power of the people and the cost of services, particularly the fuel cost, has increased. On the other hand, depreciation of Rupee against the Dollar pushed the business plans towards a revaluation of numbers, reassessment of business, revised estimates on revenue projections, said GM Careem.

Careem To Achieve Over 80% of its Target

The business situation is getting tougher in Pakistan due to the economic slowdown that hit the purchasing power of the people at large. Like many other businesses and companies are facing challenges in the market.

“However, we are confident that Careem will safely achieve more than 80 percent of its targets to enhance its fleet size to 1 million vehicles with the creation of 1 million jobs by 2020,” said Salahuddin Ghaznavi, CFO at Careem.

At present, we are operating with approximately 375,000 vehicles in 15 various cities. These cities are largely untapped and are being explored by Careem. There are 15 more cities where we plan to commence our operations and it will be done in phases.

The achievement of goals, set by Careem, will benefit the people and the local economy, he remarked. The transport sector is huge in Pakistan which also includes trucks, intercity buses, coasters and hi-ace, light commercial vehicles etc.

Ghaznavi believes that various plans of the provincial and federal governments were announced regarding buses and circular-railway services but these will not go against Careem as there is a lot of scope in the local market.

The acquisition deal will not compromise the quality of service and fares of rides in the future as the company will continue to operate as it is now, claimed the official. The deal’s completion requires the approval of many authorities in different countries which may take about a year or so.

The adoption of technology is a win-win situation for every stakeholder of the society from customers to captains, investors to government, he concluded.

  • A bus service would be very welcome indeed. However they will face resistance from the existing bus service mafia and their cronies in government departments.

  • baqwaas sab drama na fare increase hua na hoga….petrol 109 or fare
    every 2nd 3rd ride credit credit credit….yeh log srf majboori ka faida utha hain

    • Bilkul sahee ha. Daikho gathia abhi bhi osi bhao main milta ha. kia. Doosra abhi saree transport EV matlab battery wali bus, car, coach hogi. Os main koey bhi petrol hoga. Yahee to main bolta hoon. Ke bhao kam hoga, keraya kam hoga, gathia kam hoga bhao main, kia? Abhi daikho coach ka seerhi pahli 3.5 ft. hai. Kon charha ga. Doosra woh tikat nahi deita ha. kia? Abhi tikat ke bagair black hota ha? Tikat bagair FBR Income Tax bus ko seal karainga kionka woh bus black ka paisa dallar se chalta ha? Ham ko Easy Paisa se keraya dena ha? Kia ham ko ya coach wala white money lega, matlab keraya? Bus ka CNG cylinder export kado lakh rupa ma bikta ha khali sylindar?Kia. Dubai main selander do lakh rupya main mang rahe hain? Pakistani Mini coach, Naswar, Bagar Tekat ke Dubai main jakar chalao? Maja aey ge. Kia?

  • Mr. Salahuddin Ghaznavi CFO Careem, Mr. Asad Haider Khan GM South, Careem in Karachi your projections, indicators positive, align to be aligned with services in Pakistan in a massive huge market of CPEC/BRI in which Korangi Industrial Area Rail/Road transport has tremendous scope of Rail/Road network re-alignment with the railways and other Multi-lateral agencies in Pakistan not only for passengers, but for trade & industry for logistics. The deal execution with various agencies, multi-laterals, transport, railways from the UIC with global coverage, regulatory transport authority, logistics, Customs, ATA Carnet/goods, would need understanding/syncronisation of Rail/Road, Customs authorities sync.
    Wish the best, successful, for Pakistan, and People of Pakistan, industries, businesses, and passengers everywhere. Best wishes

  • As logistics companies as Careem, Uber, and other companies with exposure to Karachi Pakistan market for the bilateral treaty with Pakistan, CEPAK, BRI, that will help our cities with vibrant opportunities, technologies collaboration in the automobile sector has to enable the caliber of work force for possible, employment. Pakistan provides opportunity for accession of the UN/WHO network for Road Safety Injury, Accidents avoidance. The technologies, treatment, therapies, to help the Accident, Injured passengers collaboration is already on way worldwide to provide assistance @ Uber, Careem. Pakistan being requested to provide engineering data, on accidents, injuries which will be used for evaluation by relevant organisation as WHO, for remedial steps.

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