KARACHI:
Acting as Online Marketplaces (OMPs), transportation service providers with technology companies have demanded that the government ensure proper regulations for the emerging horse riding industry. They advocate for standard practices, reasonable taxation and fair competition, alongside the rehabilitation of damaged road infrastructure. These measures would benefit customers as well as users and service providers.
The transportation services industry is gaining momentum due to various reasons, especially the significant increase in the cost of owning and maintaining a car in Pakistan. The public transportation ecosystem is woefully inadequate, leaving a need for safe, reliable, and convenient transportation options as people travel every day.
OMPs offer a seamless mobility experience for customers while creating economic opportunities for driver-riders, known as captains. As transport service providers, they support policies that promote road safety, infrastructure improvement and an enabling environment for business development. Prioritizing these areas will enhance the overall mobility experience for local people and support the development of the transport sector.
Through app-based platforms or e-commerce websites, service providers offer a range of services including ride-hailing, long-distance transport, carpooling, mass transit, motorbikes, rickshaws, cargo, drop-off and courier services.
People are increasingly choosing transportation services provided by OMPs such as Careem, Uber, Bykea, inDrive and Yango because of trust, safety and convenience.
App-based platforms offer many security advantages over traditional phone bookings. Customers can easily book rides from home, track their route in real-time, share trip details for added security, and access features like driver ratings and emergency assistance.
A Careem spokesperson said: “We are pioneers of transportation services in Pakistan. We understand that Pakistan is a security-challenged market, so we never compromise on customer and captain safety. We have a comprehensive approach, starting with strict background checks on all captains, ensuring that only trusted people join our platform.”
The company has 50 million customers across the region, with over 12.5 million in Pakistan and 2.5 million captains across the region, including 820,000 in Pakistan. Careem has paid $4 billion in profits to its captains, with $500 million in Pakistan.
It offers a variety of product offerings from low-cost to premium, including FLEXI itineraries that allow customers to bid and negotiate their own price.
Careem first launched in Dubai, UAE in 2012, entered the Pakistani market in late 2015 and has been operating there ever since. The company currently operates in nine countries and more than 80 cities. Careem for Business (C4B) has more than 550 companies across the country, including about 10 companies that offer mass transit services.
It is the only transportation service that offers a 24/7 en-route helpline for both customers and captains, which adds to the overall experience even though it is an additional cost to the business.
Being a market leader has had many challenges, including introducing the ride-hailing concept to an unfamiliar market and navigating regulatory hurdles. The company has worked with the government to resolve these challenges, the spokesperson said.
Fluctuations in fuel prices have created difficulties in adjusting fares to remain affordable for customers while ensuring fair payments for captains.
Unfortunately, road infrastructure in many parts of the country is substandard, increasing vehicle maintenance costs for both commercial and private drivers. This requires more frequent maintenance, ultimately increasing costs.
“What’s interesting is that our company has raised $30 million to date, a mere fraction of what was spent on the Islamabad metro bus project, which serves fewer people than Bykea. Maybe it’s time for the state to consider investing in crowd-sourced mobility solutions instead of pouring millions into subway projects that fail to deliver door-to-door services. When it comes to motorcycle conditions, we rely on customer reviews,” said Bykea founder Muneeb Maayr.
Bykea pioneered the concept of motorcycle taxi in Pakistan, breaking the mold of three-wheeled Qingchis. Launched in 2017, the app matches part-time motorcycle owners with customers headed in the same direction, now handling around three million bookings monthly.
With its affordable and fast service, Bykea has grown in popularity in Karachi, Lahore and Islamabad, with 700,000 monthly active customers and 60,000 drivers.
“We face several challenges, including regulatory hurdles, infrastructure constraints and ensuring driver and passenger safety. Users may experience issues such as traffic congestion, city infrastructure limitations, and occasional technical glitches with the app. However, we are committed to overcoming these challenges and improving the overall experience.
An example of our ongoing efforts is the recent launch of insurance coverage for both drivers and passengers. Infrastructure challenges such as poor road conditions can affect vehicle maintenance costs. However, we work closely with our driver-partners to address these challenges through regular vehicle inspections, maintenance instructions and support when needed. With more than 20 Driver Facilitation Centers (DFCs) across Pakistan and dedicated pit stops, we ensure immediate assistance while offering rest areas for our drivers,” explained Sidra Kiran, InDrive’s PR and Communications Manager for Pakistan-SA .
inDrive, launched in Pakistan in 2021 with bidding/P2P model, recently introduced in-drive insurance for users. The user base is growing steadily both monthly and annually, reflecting high customer satisfaction, positive word-of-mouth referrals and expanding market reach. inDrive has secured a $150 million deal from investors to fuel its product and market expansion plans.
Operating in Pakistan for three years, inDrive provides transportation services in 20 cities and long-distance services in more than 200 cities across the country. Globally, it operates in 46 countries and over 700 cities.
Published in The Express Tribune, April 19u2024.
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