Careem

Careem Networks FZ LLC
Privately held company
Industry Technology, transportation network company
Founded March 2012 (2012-03)
Founders Mudassir Sheikha
Magnus Olsson
Abdulla Elyas
Headquarters Dubai
Area served
 53 cities in the Middle East, North Africa and South Asia
Key people
 Mudassir Sheikha
Magnus Olsson
Abdulla Elyas
Wasim Akram
Products Mobile app
Services Taxicab, Vehicle for hire
Website www.careem.com

Careem is a transportation network company based in Dubai, with operations in 53 cities in the Middle East, North Africa, and South Asia. The company is as of 2017 valued at around $1 billion.[1]

History

Careem was co-founded by Mudassir Sheikha and Magnus Olsson, who had both worked as management consultants at McKinsey & Company [2] It started operating in July 2012 as a website-based service for corporate car bookings, and evolved to become a transportation network company with car hire for everyday use.[3]

In 2015, the company acquired a Saudi-based home delivery service company and the founder, Abdulla Elyas joined Careem.[4] In 2017, the company announced a program to extend maternity leave and hire more women.[5]

Funding

Careem has raised funding of US$421.7 million to date.[6] It received seed money of US$1.7 million in a round led by STC Ventures in 2013. In 2014, it received funding of US$10 million in a Series B round led by Al Tayyar Travel Group and STC Ventures.

In November 2015, Careem announced a Series C round investment of US$60 million led by The Abraaj Group.[7][8][9] In October 2016, the company reached an agreement with regulators in Dubai whereby customers are able to book all taxicabs and limousines operating in Dubai via the Careem mobile app.[10] In December 2016, the company raised US$350 million in a Series D round, based on a $1 billion valuation for the company.[11] Saudi Telecom in this funding round invested in a 10% stake in Careem.[1]

Criticism

Regulations

Taxi protests in Egypt

Uber and Careem faced heavy criticism in Egypt at the beginning of 2016 by local taxi drivers for operating without official taxi licenses. Taxi” drivers organized several protests and sit-ins demanding that the Egyptian government intervene to halt the activities of the TNCs. A committee was organized by the Egyptian government to assess the complaints of the protesting taxi drivers and standardize taxi services in Egypt. They ruled in favor of the TNCs, ensuring that they can operate legally and provided legal protection for the TNC drivers who had been facing attacks by both state police and angry taxi drivers.[12][13][14][15]

Airport ban in Saudi Arabia

In March 2017, Saudi Arabia banned Uber and Careem from picking up at airport, citing license requirements. Saudi Arabia had earlier banned the TNCs from allowing non-Saudis to register as drivers.[16][17]

References

  1. 1 2 "Saudi women are a captive market for Uber and Careem". The Economist. Retrieved 2017-05-19.
  2. ↑ "Meet Careem: The Uber of The Middle East". Retrieved 2016-10-07.
  3. ↑ BASHIR, OMER (February 15, 2016). "Uber-clone vows safe, affordable ride. Should you Careem around Karachi, Lahore?". Dawn.
  4. ↑ Prince, Stephanie Nour (January 5, 2015). "Careem acquires Saudi-based home delivery service Enwani". Wamda.
  5. ↑ "Dubai's Careem to extend maternity leave, hire more women". Arabian Business. March 8, 2017.
  6. ↑ "Crunchbase: Careem". Crunchbase. Retrieved 2016-10-07.
  7. ↑ "Careem raises US$ 60 million in new funding with The Abraaj Group as lead investor". Abraaj.com (Press release). November 10, 2015.
  8. ↑ Aby Sam Thomas (January 13, 2016). "Careem: It's Full Speed Ahead For This Middle East Startup". Entrepreneur.
  9. ↑ Williamson, Rachel (November 10, 2015). "Car-hailing app Careem raises $60M Series C". Wamda.
  10. ↑ Arnold, Tom; Carvalho, Stanley (October 4, 2016). "Uber faces pressure in Dubai as regulator signs deal with rival". Reuters.
  11. ↑ Farber, Madeline (December 19, 2016). "Uber’s Middle East Rival Just Got a $1 Billion Valuation". Forbes Magazine.
  12. ↑ Pupic, Tamara (15 November 2015). "Entrepreneurs of the Week: Magnus Olsson and Mudassir Sheikha". Arabian Business.
  13. ↑ "Egyptian Government: Uber and Careem Will Stay in Egypt". Cairoscene.com. March 10, 2016.
  14. ↑ Charbel, Jano (February 4, 2016). "Taxi drivers protest against Uber, other app-based car services". madamasr.com.
  15. ↑ Menna Alaa El-Din (March 8, 2016). "Egyptian taxi drivers start open-ended sit-in to demand Uber, Careem shutdown". Ahram online.
  16. ↑ "Uber and Careem banned from airport pickups in Saudi Arabia". Reuters. March 2, 2017.
  17. ↑ "Saudi Employment Goals Get Lift from Uber, Careem". Voice of America. January 8, 2017.
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