Careem has built a reputation as a major innovator in the Middle East. What began with a handful of drivers and a small fleet of vehicles in 2012, is now a wholly-owned subsidiary of Uber Technologies operating in more than 100 cities in 14 countries throughout the Middle East. Known as the region’s super app, Careem lives by its slogan—everyday life, made simple—providing citizens with a host of daily services from rides, shopping, and food delivery, to making payments and more. Careem also supports thousands of refugee families with daily essentials and has joined forces with several impact partners, including the Disabled Children’s Association, ShareTheMeal, and the UN Refugee Agency.
In this interview with Gheed El Makkaoui, we talk about the company’s long-term vision, the impact of COVID on that vision, and the importance of several forward-looking market trends, among other topics.
Negociações de inovação com BCG Oriente Médio
Innovation Talks focuses on consumer and industry trends, highlighting the ways in which digital and innovative companies tackle their most ominous challenges, and what they have to offer their local customers.
Our featured guests discuss how digital is enabling new business models and innovations that do not yet exist in our region—but will soon—and offer advice to young entrepreneurs who want to learn more about setting-up and growing startups in Middle East.
The impact of COVID on businesses is an important part of the debate as it has changed consumer trends and introduced new ways of working that are re-shaping their culture.
In our first round of Innovation Talks, we interview three leaders. Tarek Kabrit is co-founder and CEO of Seez, um aplicativo inovador para pesquisar, comprar e entregar carros em toda a região - UAE, Arábia Saudita, Kuwait, Paquistão e África do Sul. Gheed El Makkaoui, é o país GM de Careem, um aplicativo sem complicações, projetado para atender às necessidades da vida cotidiana-desde passeios e pedidos de alimentos às compras e pagamentos. Finalmente, Ambareen Musa, CEO de Sougalmal, Junta Conversas de inovação to discuss her financial products comparison site—offering an end-to-end process to apply for loans, credit cards, bank accounts, and insurance. The company was named #2 startup of the year by Forbes Me.
Obrigado por se juntar a nós. Esperamos que você encontre nossa Inovação Talks para ser substantivo, bem informado e completamente agradável.
Como a Covid afeta os consumidores dos Emirados Árabes Unidos e, portanto, os negócios da Careem? Acreditamos que essa tendência está aqui para ficar. E, à medida que mais consumidores adotaram comportamentos mais cautelosos em suas vidas diárias, vimos uma forte adoção de entrega sem contato para todas as compras. Há também uma nova apreciação pela segurança, e é por isso que Careem agora oferece seguro a cada viagem. E, em casos de emergência, temos um call center 24/7 e um botão de alerta no carro, que em breve estará disponível em todos os lugares que operamos. Seja micro-mobilidade, mobilidade em massa ou eco-mobilidade, todos são projetados para apoiar as pessoas a se contorcer de maneira mais eficiente, acessível e sustentável. Nos próximos anos, precisaremos de regulamentos para abordar essas novas formas de viagem e um equilíbrio saudável entre a oferta e a demanda desses serviços. Do ponto de vista da “mobilidade das coisas”, vemos grandes oportunidades de inovação e crescimento. Veja a entrega de alimentos - que é avaliada em mais de US $ 110 bilhões neste ano - o mercado pode atingir US $ 150 bilhões até 2023 (com base nas estimativas do CAGR desde 2019). Os próximos anos revelarão maneiras de reduzir custos, tornar as entregas mais acessíveis e aumentarão a eficiência. No entanto, os possíveis obstáculos também são infinitos. Devemos desenvolver os recursos, talentos e estruturas que nos permitem promover a inovação em toda a organização. Dessa forma, ganhamos velocidade, agilidade e flexibilidade no atendimento às necessidades de mercado em rápida mudança. Também é vital para os investidores-organizações grandes ou pequenas startups-para pensar no futuro e planejar a próxima geração de inovações e depois projetar suas estratégias e visões de acordo. Também precisamos de governos e regulamentos que promovam e apóiem inovações no setor privado, garantindo que os mercados continuem sendo competitivos e saudáveis.
As COVID ramped up in March, online grocery delivery became the new norm for many UAE consumers, particularly those at risk for the virus and others who simply enjoyed the convenience. We believe this trend is here to stay. And as more consumers have taken up more cautious behaviors in their daily lives, we've seen heavy adoption of contactless delivery for all purchases. There is also a new appreciation for safety, which is why Careem now offers insurance with every trip. And, in cases of emergency, we have a 24/7 in-ride call center and an in-car alert button, which will soon be available everywhere we operate.
What is your perspective on mobility and everyday convenience platforms in the next 10 years?
Technology is propelling many new forms of transportation. Whether micro-mobility, mass-mobility, or eco-mobility, all are designed to support people in getting around more efficiently, affordably, and sustainably. In the coming years, we will need regulations to address these new forms of travel and a healthy balance between the supply and demand of these services. From a “Mobility of Things” perspective, we see massive opportunities for innovation and growth. Look at food delivery—which is valued at more than US$110 billion this year alone—the market could reach US$150 billion by 2023 (based on CAGR estimates since 2019). The next few years will reveal ways to reduce costs, make deliveries more affordable, and increase efficiencies.
What do you consider the main opportunities and obstacles in your industry?
There are endless opportunities for innovation, from offering customer convenience, to further raising the bar in terms of partner and merchant experiences, to simply improving efficiencies. However, the potential obstacles are also endless. We must develop the resources, talent, and structures that allow us to foster innovation throughout the organization. In this way, we gain speed, agility, and flexibility in addressing rapidly changing market needs. Also vital is for investors—whether large organizations or small startups—to think ahead and plan for the next-generation of innovations and then design their strategies and visions accordingly. We also need governments and regulations that foster and support innovations in the private sector while ensuring that markets continue to be competitive and healthy.
Como você compararia o seu pré-Covid, durante o Covid e o Pós-Covid? A pandemia acelerou nossa capacidade de fazer essa transição, à medida que aumentamos nossos serviços de entrega para atender a um enorme movimento em direção a canais on -line que fornecem mantimentos e necessidades cotidianas. Essas necessidades aumentaram 300% em volume e aumentaram 500% em valor durante a Covid. Hoje, mais de 25% do setor de varejo dos Emirados Árabes Unidos está agora online, uma porcentagem que estava no único dígito há apenas um ano. Além disso. Também expandimos nosso serviço de correio para incluir compras em nome dos clientes. Nosso foco definitivamente mudou para entregas, que continuarão pós-Covid, de acordo com nossa estratégia original. A pandemia simplesmente acelerou o plano. Tivemos que utilizar vários recursos e mudar nosso foco para garantir que mantenhamos a conveniência para nossos clientes. Continuamos analisando uma variedade de serviços que podem atender às necessidades diárias de nossos clientes, que esperamos que virão no futuro. A "relevância" do cliente será fundamental à medida que as restrições afrouxarem e os serviços de carona começarem a olhar mais para o futuro. Acreditamos fortes na tecnologia e estamos reavaliando a necessidade de espaço de escritório e as melhores maneiras de trabalhar juntas. Dito isto, a produtividade realmente melhorou durante esses tempos. Portanto, damos aos nossos funcionários a opção de trabalhar em casa de forma permanente.
Careem's core focus pre-COVID was to transition from a ride-hailing platform to a super app. The pandemic accelerated our ability to make this transition, as we ramped up our delivery services to address a huge movement toward online channels that provide groceries and everyday needs. These needs went up 300% in volume and up 500% in value during COVID. Today, more than 25% of the UAE retail industry is now online, a percentage that was in the single digits just a year ago. Also, during COVID, we took over the region’s Uber Eats business, focusing on food delivery, and built on our shop service to enter the daily essentials and specialty shops delivery services. We also expanded our courier service to include shopping on behalf of customers. Our focus has definitely shifted to deliveries, which will continue post-COVID in line with our original strategy.
Were you planning to launch other products or services before the pandemic, and then shifted to meet new market needs?
Our strategy of shifting platforms and getting into these verticals was always part of our long-term plan. The pandemic simply sped up the plan. We've had to cross-utilize multiple resources and re-shift our focus to ensure we maintain convenience for our customers. We continue to look at a variety of services that could address our customers’ daily needs, which will hopefully come in the future. Customer "relevance" will be key as restrictions loosen and ride-hailing services begin to look more toward the future.
How have Careem operations changed or evolved?
Careem was among the first organizations to fully shift to a 100 percent work-from-home model. We are strong believers in technology and are reassessing the need for office space and the best ways to work together. That said, productivity actually improved during these times. Therefore, we have given our employees the option to work from home on a permanent basis.
Are there other key learnings or “takeaways” from the crisis?
Agility is among the key learnings from this pandemic, including how quickly we can repurpose our resources and shift direction.
Descobrimos a importância da agilidade. Se pensarmos em nossas raízes empresariais, devemos ser capazes de agir rapidamente, como mencionado anteriormente, permanecer relevantes no mercado e operar internamente de uma maneira muito flexível. A agilidade está entre os principais aprendizados dessa pandemia, incluindo a rapidez com que podemos redirecionar nossos recursos e mudar de direção. À medida que os comportamentos do consumidor mudam, geralmente diariamente, nosso caminho de crescimento consiste em explorar diferentes maneiras de permanecer de primeira qualidade-seja por meio de serviços de pagamento, serviços de entrega ou casos alternativos de uso diário. E, é claro, a mobilidade continuará sendo o núcleo de nossos negócios. Isso inclui novas formas de mobilidade, como o conceito de compartilhamento de bicicletas lançado recentemente nos Emirados Árabes Unidos. Portanto, existem muitos planos interessantes em nosso futuro. Aqueles que tendem a não ter sucesso são aqueles que apresentam novas idéias ou inovações que não falam sobre o que os consumidores precisam ou desejam. Meu melhor conselho para aspirantes a empreendedores é começar com uma declaração de problemas, criar um valor de curto prazo para impulsionar o crescimento precoce e depois transformar esse crescimento em um valor de longo prazo que pode gerar receitas. É importante ter um foco de curto prazo e uma visão de longo prazo-tanto essenciais para criar um negócio bem-sucedido e sustentável. Giuseppe Bonaccorsi
Speaking of the future, what are Careem’s imminent plans in the region?
We will continue building a platform that is relevant to our customers’ day-to-day lives. As consumer behaviors shift, often on a daily basis, our growth path consists of exploring different ways to remain top-of-mind—whether through payment services, delivery services, or alternative daily-use cases. And of course, mobility will remain the core of our business. This includes new forms of mobility such as the bike-sharing concept recently launched in the UAE. So, there are lots of exciting plans in our future.
If you were to offer advice to young entrepreneurs, what would it be?
In my experience, the top entrepreneurs always start with a problem that needs a solution. Those who tend not to succeed are those who come up with new ideas or innovations that do not speak to what consumers need or want. My best advice to aspiring entrepreneurs is to begin with a problem statement, build in short-term value to drive early growth, and then turn that growth into longer term value that can drive revenues. It’s important to have both a short-term focus and a long-term vision—both are essential to creating a successful, sustainable business.
