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Ride-hailing service in Pakistan

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Chinese firm set to launch ride-hailing service in Karachi this month
March 06, 2020

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This time round, a Chinese tech giant is set to launch wide-ranging operations in Karachi, including delivery and ride-hailing cab services, with plans to invest $600 million in the country, officials and market sources said. — TimesacoPak Twitter
KARACHI: As the fate of both provincial and federal government-funded transportation projects remains uncertain amid the widening gap between demand and supply of adequate transportation facilities, international players are seeing great opportunities in Karachi to expand their businesses.

This time round, a Chinese tech giant is set to launch wide-ranging operations in Karachi, including delivery and ride-hailing cab services, with plans to invest $600 million in the country, officials and market sources said.

These sources said that, after first setting foot in Islamabad, the Chinese firm Timesaco is now set to expand its Tatu Mobility operations to Karachi, with initial plans to launch two services this month, thereby adding to several existing ride-hailing services being operated by some half a dozen technology companies across the city.

The company, however, claims that its services will be different from the already existing operators on a variety of fronts.

“Tatu Mobility has already launched its online cab service in Islamabad and Rawalpindi with name of Timesaco,” said Donald Li, the founder and the CEO of the company. “Tatu Mobility is going to start its operation in other cities as well. Tatu Mobility will start online cab service and digitisation of current transportation network in Pakistan. We are set to launch our service in Karachi this month.”

Firm to invest $600m in Pakistan

In the first phase, Mr Li said, the company plans to launch its online cab service and system for digitising the existing transport network, following which it plans to also introduce its commute and delivery service later this year.

When asked what opportunities the city offers and how any new operator could survive amid growing competition in an environment where there are already several players racing to win their share, he referred to some offers the Chinese company was planning to extend to its business partners that would set it apart from the others.

“Tatu Mobility offers 97 per cent share of earning to its drivers or captains of online cab service,” said Mr Li. “Other companies are offering 70pc to 75pc. We are facing competition but our focus is not just on the profit side; Tatu Mobility wants to restructure and digitise the current transport system. In its initial phase, Tatu Mobility intends to invest $600 million in Pakistan and gradually investment will be increased based on the market.”

The keen interest of the private sector and business giants prove that there are immense opportunities when it comes to transport service in Karachi.

This relatively untapped market, coupled with a public-sector transport system that is in a state of virtual collapse, has motivated these organisations to expand operations in Karachi, with new projects still in the pipeline.

However, experts believe that besides facilitating private businesses in the area, there is still a gap that can be filled by the public sector transport service.

“Till 1996, this city was witnessing operations of both private sector and the government buses under the Karachi Transport Corporation,” said Prof Dr Noman Ahmed, chairman of the Department of Architecture and Planning at NED University of Engineering and Technology.

“There were obvious reasons for the closure of the KTC, but for a very good number of years both sides — the government and the private sector — kept serving the transport sector collectively. The government still cannot only regulate the transport business, it can also bring its share for the people of Karachi, because good and easy [to access] transport services at cheaper rates are still largely needed.”

Published in Dawn, March 6th, 2020
 
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Bykea, a three-year-old ride-hailing and delivery service, today has more than 500,000 bikes registered on its platform. It operates in some of Pakistan's most populated cities, such as Karachi, Lahore and Islamabad, Muneeb Maayr, Bykea founder and CEO, told TechCrunch.Jan 31, 2020
 
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Thats the kind of news that make me happy. It helps common people in Pakistan, also help creates business and job opportunities.
 
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Ride hailing app Grab to begin services in Pakistan
By Ali Ahmed
  • Singapore-based Grab says rides in Pakistan would be facilitated through Careem app.
  • The service would be available across 15 cities in Pakistan.

After Uber and Careem, Singapore-based ride hailing app Grab has announced to offer its services in Pakistan from next year, alongside 13 other countries in the Middle East and in Japan.

Grab is a Singaporean multinational ridesharing company and also offers food delivery and digital payments services via mobile app. According to Grab, the rides in Pakistan and the Middle East would be facilitated through the Careem app, while bookings in Japan would be fulfilled by JapanTaxi, said the company in a statement.

JapanTaxi operates a fleet of around 70,000 cars, whereas, Careem, which was acquired by Uber earlier this year for US$3.1 billion, has more than 1 million drivers in the Middle East.

The service would be available across 15 cities in Pakistan including Karachi, Lahore, Islamabad, Peshawar, Faisalabad, Hyderabad, Multan, Gujranwala, Sialkot, Abbottabad, Sargodha, Mardan, Sukkur, Quetta and Bahawalpur.
According to Grab, users will be able to pay for rides using GrabPay credits and earn GrabRewards points. The app will also be in the consumers' preferred language for easier navigation.

The latest initiative is part of Grab's existing partnership with Splylt, a London-based global mobility marketplace, which was signed back in June under which the integration of Splyt and Grab's global network of mobility partners into the Grab app.

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Similar to Careem Wallet, users will be able to pay for Grab rides using GrabPay credits and also earn GrabRewards points, likely for future ride concessions. The app will include a variety of local languages for ease of user access.

The list of Pakistani cities covered by Grab includes the same cities that are already covered by Careem and Uber and available through Splyt. These are; Karachi, Lahore, Islamabad, Peshawar, Faisalabad, Hyderabad, Multan, Gujranwala, Sialkot, Abbottabad, Sargodha, Mardan, Sukkur, Quetta, and Bahawalpur.

This expansion comes as a result of Grab’s investment in Splyt, which is a London-based mobility marketplace that connects supply and demand for terrestrial transport. Careem, Uber, JapanTaxi and several other ride-hailing companies make use of its services. Through this partnership, Splyt’s network of mobility partners will be available to Grab users visiting the aforementioned countries. The app that will allow its local users to book rides across 13 countries through the Grab app.

Grab will also bring its Customer Experience team on board where users will be able to access local emergency services through the Grab app.

The extended booking service in Pakistan and other countries will be rolled out to Grab’s users from the rest of the countries in 2020.
 
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Top ride hailing services making transportation easier, cheaper

Ahsan Nisar

When thinking of ride-hailing or taxi apps, the first thing that probably comes to one’s mind is Careem or Uber. However, things have changed a lot on the transportation landscape since 2015 and thee some more and fast moving companies that have moved in to solve the transportation issues of Pakistan:


Siayara

Siayara is a new online taxi service that will cater to people looking for inexpensive transport in Karachi. Initially, they have started with 2,000 cars divided into four categories – eco-mini, eco-, eco-plus, and eco-business with reasonable fares and 24 hours service. The company aims to introduce a motorcycle service as well.


Buraq

Eyeing on the potential transport market, Timesaco, a Chinese company is all set to launch its online taxi service in six big cities of Pakistan including Karachi, Lahore, Faisalabad, Islamabad, Rawalpindi and Peshawar and it would be extended to other urban centers.

The company has an open-door policy as people could register their cars, bike, rickshaws, pickups, Qingqi loaders, and trucks with the company and get multiple ways for earning. Buraq drivers will get 97% share of their earning and company will get only 2% from drivers while one percent would be invested in Drivers’ Club for providing health and education services to families of drivers.

The company has initially invested $20 million with future prospects of $600 million. They intend to provide a rapid service platform to citizens by launching five special service including the Buraq Taxi Service, Heavy Cargo Delivery, Orders’ Delivery, Moving Automated Teller Machines (ATM) and vehicle advertisement facilities.


Swvl

Swvl, a Cairo-based firm, which is due to move its headquarters to Dubai in November, launched in Nairobi about six months ago and began operations in Lahore in July.

Pakistan is the second international market for Swvl. It has been successfully launched in Lahore, Islamabad and Rawalpindi and has recently launched in Karachi.

Swvl is an app-based bus hailing service, which is a private premium alternative to public transport. The Swvl app, which has fixed bus routes, uses the passenger’s location and destination to determine the shortest possible trip time based on the nearest bus stop. They make the commute comfortable in air-conditioned top-notch buses with spacious seats for just Rs 20!


Airlift

With fixed routes, timings and prices, Airlift is a daily commute ride app that lets users hail and track high quality, well-maintained mini-buses. Airlift is app based technology startup that offers a smart bus service tailor-made for daily commuters. With a fare of just 50 PKR, a reserved seat in an air conditioned mini bus and hundreds of routes spread all over Karachi and Lahore. Airlift is gradually becoming the first option of working professionals and students who have to travel in the morning and come back in the evening.


Bykea

Smartphones and two wheelers are the two most common assets owned by the majority of the people in Pakistan. Bykea brings technology to leverage these assets for optimal utility and to bring a source of income to families.

Daewoo

The Daewoo Express has been providing its transportation services since the last 12 years to the crowd in Pakistan. The company has been providing long distance traveling to the public of Pakistan and aims to keep on increasing the number of destinations across the country. The company currently has 31 cities that it covers and 40 total destinations from Sindh, Punjab and Khyber Pakhtunkhwa (KPK). It’s the first of its kind to keep environment friendly technology in the bus system. To add up to the services, there’s a cargo service as well which is operational 24/7. Cargo consignments are transported safely and professionally from one city to another.

Faisal Movers

Started in 1994, under the banner of Faisal Movers with logistics business and then express bus service between Sargodha and Multan, which has been expanded to many folds. Faisal Movers serves as a hub of passenger transport throughout the length and breadth of Pakistan. Faisal Movers is having a large and modern fleet of buses which is catering the needs of approximately 300, 000 passengers per month nationwide.

Some of the other popular ride hailing apps are:

  • Shahi Sawari (Rickshaw hailing app)
  • A-Taxi (Turkey based company)
  • Paxi (First female cab service)
The writer is a Karachi based freelance columnist and is a banker by profession. He could be reached on Twitter @ReluctantAhsan
 
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