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REUTERS: Uber exits five Pakistani cities, to continue services via unit Careem

That's the case with all ride-hailing companies, their plan is to grow as fast as possible while figuring out ways to minimize losses. This approach requires huge capital and large sums of money get burned very quickly. As long as VCs keep giving them money they will keep growing. Look at our own Airlift, when Airlift needed series C funding, the VCs backing Airlift said that they will grant them money after a month. Airlift couldn't afford to wait a month and this resulted in the death of Airlift.
what resulted in the death of airlift was extremely poor on-ground management. they thought that lounging around in pajamas sitting on bean-bags all day with laptops and earphones is a good alternative to on-ground work. their warehouse management was pathetic, their supply chain issues were enormous, with duplicate orders, rampant thievery and warehouse locations not being suitable or many warehouses being opened up in low demand areas.
 
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Careem and Uber are one and the same entity in Pakistan.
Correct, after Uber bought Careem there was no competitor of Uber in Pakistan. This is why Uber operated in Pakistan with two names to create an illusion of competition. Since a powerful competitor like In-Driver has entered the Pakistani market there is no need for Uber to operate with two names anymore.
 
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what resulted in the death of airlift was extremely poor on-ground management. they thought that lounging around in pajamas sitting on bean-bags all day with laptops and earphones is a good alternative to on-ground work. their warehouse management was pathetic, their supply chain issues were enormous, with duplicate orders, rampant thievery and warehouse locations not being suitable or many warehouses being opened up in low demand areas.
Did you work for them or with them?
 
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Airlift pivoted to e-commerce after their transport business bombed due to COVID.
@sparten They could have focused on other avenues. E-commerce requires a different business philosophy. In e-commerce growth is everything. Airlift's grand plan was to grow big enough to be eventually bought by a megacorporation like Amazon, like how Daraz got bought by Alibaba when it got big enough.
 
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inDrive to expand operations in five more cities in Pakistan

  • Company official says it will also enhance its presence in cities that it already covers
Bilal Hussain
October 12, 2022

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InDriver, which has rebranded itself as inDrive, is now gearing up to increase its presence in Pakistan with plans to expand operations in five more cities.

The company is currently operating in 11 cities in Pakistan including Karachi, Islamabad and Lahore.

Speaking to Business Recorder on the sidelines of an event, inDrive Public Relations and Communication Manager for South Asian Region Sidra Kiran said that the company was likely to enhance its presence to five more cities.

She was reluctant to share exact details about the company’s expansion plans but confirmed that the company will also strengthen its presence in the cities where it is already operating.

Kiran said that inDrive was the most downloaded ride-hailing application in Pakistan as it accounts for 40% of downloads in the category. Launched in 2012, inDrive is a global IT and transportation platform offering services in 47 countries.

“Pakistan is an exciting market,” said inDrive Director for Public Relations Natalia Kolmakova in a recorded message during the event. “We have launched our services there to support convenient mobility solutions.”

“As a company, we have always focused on entering under-served areas,” she said. “In fact, inDrive was founded in a region which had just a few transportation options.”

She added that the company aspired to provide mobility solutions and support economic development of under-served markets like Pakistan.

A company statement said that inDriver had moved beyond ride-hailing to become an urban services marketplace, where users could search for jobs, request household services, book long-distance trips, deliveries and cargo services. The company will enter new strategic segments - fintech, food delivery, e-commerce, as well as develop large-scale non-profit development programs, it said.

“We intend to identify markets and areas of life characterised by unfair and non-transparent conditions, and offer alternative business models, scaling them across its entire network,” it stated. “This applies to markets where pricing is determined by complex algorithms and non-transparent schemes, which essentially make it unfair.”

The company also held the belief that a price negotiated by users was a fair price.

“We are on a mission to provide fair pricing opportunities to as many people as possible across different countries around the world,” the company said in the statement.

It is pertinent to mention that on Tuesday, Uber Technologies notified users in Pakistan that the company is discontinuing its services in Karachi, Islamabad, Faisalabad, Multan and Peshawar on an immediate basis. However, the firm has decided to continue operating in Lahore.

“We’ve made the decision to cease operating the Uber app in Karachi, Multan, Faisalabad, Peshawar and Islamabad,” the company said in a statement. “Uber remains committed to Pakistan – we will continue to serve these five cities with our subsidiary brand Careem and continue to operate the Uber app in Lahore.”
 
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That's the case with all ride-hailing companies, their plan is to grow as fast as possible while figuring out ways to minimize losses. This approach requires huge capital and large sums of money get burned very quickly. As long as VCs keep giving them money they will keep growing. Look at our own Airlift, when Airlift needed series C funding, the VCs backing Airlift said that they will grant them money after a month. Airlift couldn't afford to wait a month and this resulted in the death of Airlift.
Ride hailing/Taxi business is a brutal one, with low margins.

Uber and others will all fail in the end, it's a perpetually loss making enterprise.

After gaining market share, when the ride hailing company will jack up their prices to recoup their enormous investment, new entrants will then undercut them on lower price, and at the higher price Taxi/Limo service will cut into their market share.

It's just another Silicon Valley/Tech World bone headed ill-conceived disruption of a service that didn't need any disruption in the first place at least not in this manner.
 
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Ride hailing/Taxi business is a brutal one, with low margins.

Uber and others will all fail in the end, it's a perpetually loss making enterprise.

After gaining market share, when the ride hailing company will jack up their prices to recoup their enormous investment, new entrants will then undercut them on lower price, and at the higher price Taxi/Limo service will cut into their market share.

It's just another Silicon Valley/Tech World bone headed ill-conceived disruption of a service that didn't need any disruption in the first place at least not in this manner.
I believe Uber will become profitable once it starts using self-driving vehicles, this way Uber won't have to pay any driver assuming that it will own these self-driving vehicles.
 
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I believe Uber will become profitable once it starts using self-driving vehicles, this way Uber won't have to pay any driver assuming that it will own these self-driving vehicles.
Tesla and other automakers will beat them quite easily...

Uber and others in the transportation business with no hardware IP are doomed...
 
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