$7\mathrm{.}2$ Ready, Steady, Ride: Careem versus Uber in the Middle East

GJ The immersion of technology within out tees NIS orate it pos$-$sible not orgy to deliver customer vale nitre effioentty n $0213$ and GJ $02$C exchanges but MPS also made it nx ewer to hake peerto$-$peer $0,2$p$,$ transactions. This concept was brought nto the transport sector try Uber, which created a $0914$ app$-$based platform to connect people who needed a rehable ride with people loolang to earn money from than Car. Although the service they provide custom$-$ers is not a new one their innovative market$-$ing and targeting strategies created a new burgeonng segment. voth the result that sense concept has become a generic term: $1/$terfication$.-$ The concept expanded rapidly to other Parts of the world, with Uber SuCCeSsfuey estattishing itself as the leader in most global markets. Uber has now moved to $376$ cities worldwide and has a net value of $$50$ billion. making it the fastest start$-$up ever to get to that value in such a short amount Of time. How$/$ever$,$ in the Middle East, Ubers aPo$-$baSed taxi$-$booking concept was ad$-$opted effectively and pre$-$emptively by Careern, a local start$-$up$,$ before Uber could enter the region. It has since given tough competition to the global leader. In the Middle Fast the Metrication of the transport sector was started in $2012$ by hero entrepreneurs. Mudassir Sheeee and Magnus Olsson. The former McKinsey consultants tenoned the app$-$based nde$-$hang senate Careers in the city of Cuba n the UAE. Careers is among country's most suocesshi start$-$up stones, wei a $30$ percent growth month on month. In just tour years. if has expanded to $44$ CiteS across $10$ couranes in the region and claims to have over $6$ melon registered users. Sheltie and CIsson's story is not very dif$-$ferent from that of Kalarlick and Camp. Tne Careers tcunders say that they were lookng to do son$-$Mt$-$Ina meerenglu and were $($oolung for ottiorturates. As consultants, both or then traveled a IN for work and felt that there was a gap in the region n arcing quick, etecont. and reliable means ol transportation$$some$-$INV We Careers. n $2013.$ the compeetwe landscape of private taxi hnng in the MENA region Changed as Uber also entered the re$-$gion by making its debut in the UAE. By than, however. Careers already had the first$-$mover advantage.

Both companies had their own competr$-$hve advantages. Uber was a well$-$established international company with a strong reputa$-$tion and track record of success. On the other hand. Careen was the kacal favonte and Launched first in the regional markets, so it was more trustworthy. In the LAE, the pnvate$-$taro sector is highly regulated. espe$-$oaty with regard to pncing and drivers' kceris$-$ing requirements. ice instance. in the UAE, the law requires private$-$taxi conpanies to operate with a minimum Of $30$ percent higher tare than public taxis. This makes the private$-$sector taxi services more of a luxury in this market. with both Uber ark:I Careers nine $10$ COmpete and referential$\backslash$deg aganst each other. Careers aims to be the largest 'mover of people' in the wider MFNA region. from Pakistan to Turkey. The brand name worked particularly well a: the LIAE and Midole East. The word 'Careers' is a play on a car$-$based service. CM e is also derived tarn the Arabic word $-$Ka$-$teern." what means "genercus' This communicates the value CrOpOstion of Careeni wary eflectivety as a company that takes good care of as customers and tees to do mom, with a big heal. This blended En:Jen$-$Arabic brand worked wel to target the large multicultural cepat population in the UAE and also helped to position it as a home$-$grown local trend for the wider Arab$-$speaking consumers through$-$out the Mello East. Cement drivers am caled captains. and a deerentiates itself by saying that where other COrdrOveS Cull tnernffeInts hng services, Careen has a nde for everyone. The market coverage strategy used by Careem is to offer differentiated services to deferent cus$-$tomers by adapting to the local needs. fa exarre pie at Dubai. 'Economy' Careen, offers budget taus. 'Business' and $*-$F est. class' options are high$-$end luxury rides. and 'MAX' cars are StArs that can seat a larger number of people. Whenc' offers Wee$-$only odes warm a wOrh$3$f$1$ cleaner. 'Careads' allow parents to Older bCOke free Or shape through the Career$\backslash$deg ally. 'Careen$)$ luds' otters Cars with baby

car seats. Cements operahonel model and is 'generous' value proposition blends well with the Midcle Eastern contest. Key features of rts model inhale the following. $1.$ Customer call center A lame popu$-$lation in the Middle East prefers to cal nsteacl of using apps. and Careen nit an entire call center for bookings and re$-$porting issues. $2$ Pay by cash: This provision addressed the population's general antipathyWhat is the business model of Uber and why is it successful?

Explain the differences in Positioning of the two brands $$Uber$$ and $$Careem$.$

What has made Careem successful in the Middle East? Explain in terms of Differentiation and$$Positioning$.$