Transportation service providers and internet businesses operating as Online Marketplaces (OMPs) have urged that the government provide appropriate laws for the developing ride-hailing sector. They support modernizing the dilapidated road infrastructure in addition to conventional procedures, fair competition, and acceptable taxes. Both service providers and consumers would gain from these actions.
The sector of ride-hailing services has been growing for a number of reasons, most prominently the substantial rise in the cost of automobile ownership and maintenance in Pakistan. Due to the sad shortcomings of the public transportation system, people must find convenient, safe, and safe ways to commute on a regular basis.
Customers may have a smooth mobility experience with OMPs, and drivers-cum-riders, or captains, can benefit financially. As suppliers of transportation services, they support laws that advance infrastructure development, road safety, and an atmosphere that fosters company expansion. Giving priority to these locations will improve residents’ overall mobility experience and encourage the expansion of the transportation sector.
Service providers provide a variety of services, such as ride-hailing, quick delivery, carpooling, motorbike, rickshaw taxi, freight, and courier services, through app-based platforms or e-commerce websites.
Due to factors like comfort, safety, and trust, more and more people are choosing ride-hailing services offered by OMPs like Careem, Uber, Bykea, inDrive, and Yango.
App-based systems are safer than traditional phone-based bookings in a number of ways. Clients may conveniently schedule trips from the comfort of their homes, follow their journey in real time, exchange travel information for additional protection, and take use of services like driver reviews and emergency support.
“We are the pioneers of ride-hailing services in Pakistan,” a Careem spokeswoman said. We never cut corners when it comes to captain and customer safety since we recognize that Pakistan is a market with safety issues. Our all-encompassing strategy starts with thorough background checks on each captain to make sure that only reliable people sign up for our platform.
With over 12.5 million clients in Pakistan and 2.5 million captains across the area, including 820,000 in Pakistan, the corporation boasts 50 million consumers around the region. $500 million of Careem’s $4 billion in earnings have gone to its captains in Pakistan.
It provides a range of products, from inexpensive to expensive, with the option for clients to bid and negotiate the price on FLEXI rides.
Careem began operations in Pakistan at the end of 2015 after making its debut in Dubai, United Arab Emirates, in 2012. The business currently works in more than 80 locations and nine different nations. More than 550 businesses nationwide are part of Careem for Business (C4B), with about ten of those businesses providing mass commuting services.
Despite being an additional cost to the company, it is the only ride-hailing service that provides a round-the-clock in-ride hotline for both captains and clients, which enhances the whole experience.
Being industry pioneers presented several difficulties, such as breaking through regulatory barriers and launching ride-hailing in a market that was unfamiliar with the idea. According to the spokeswoman, the business collaborated with the government to find solutions for these issues.
It was challenging to modify rates to keep them inexpensive for passengers while guaranteeing captains received adequate compensation because to fluctuating fuel prices.
Unfortunately, poor road conditions can be found in many areas of the nation, which drives up the cost of car maintenance for both individual and commercial drivers. This means more regular maintenance is required, which raises expenditures in the end.
It’s noteworthy to note that, compared to the amount invested on the Islamabad metro bus project, which serves fewer people than Bykea, our firm has only raised $30 million to yet. It’s possible that the state might think at funding crowdsourced mobility solutions instead of throwing millions of dollars on metro projects that don’t provide door-to-door service. According to Muneeb Maayr, the founder of Bykea, “we rely on customer ratings regarding motorbike conditions.”
Bykea broke the mold of the three-wheeler Qingchis by pioneering the motorbike taxi idea in Pakistan. The app, which was released in 2017, connects clients traveling in the same direction with part-time motorcycle owners. It currently processes three million bookings each month.
Bykea, which has 60,000 drivers and 700,000 monthly active clients, has become extremely popular in Karachi, Lahore, and Islamabad due to its quick and inexpensive service.
“We have a number of obstacles, including as infrastructural constraints, legal barriers, and guaranteeing the safety of both drivers and passengers. Issues that users may encounter include limited city infrastructure, gridlock on the streets, and sporadic app technical difficulties. However, we’re determined to overcome these obstacles and enhance the whole experience.
Our recent introduction of insurance coverage for both drivers and passengers is one illustration of our continuous efforts. Problems with the infrastructure, including bad road conditions, might affect how much car maintenance costs. To overcome these obstacles, we work closely with our driver-partners and offer regular vehicle inspections, maintenance recommendations, and assistance as required. Sidra Kiran, inDrive’s PR and Communication Lead for Pakistan-SA, said, “With over 20 Drivers Facilitation Centers (DFCs) across Pakistan and dedicated pit stops, we ensure prompt assistance while offering resting spaces for our drivers.”
InDrive, which debuted in Pakistan in 2021 with its bidding/P2P model, has now given consumers access to in-ride insurance. Positive word-of-mouth recommendations, increasing market reach, and excellent customer satisfaction are all reflected in the user base’s consistent monthly and annual growth. An investment of $150 million was obtained by inDrive to support its goals for product and market expansion.
After three years of operation, inDrive offers ride-hailing services in 20 cities and intercity services to more than 200 cities across Pakistan. It works in more than 700 cities and 46 countries worldwide.
I am a dedicated student currently in my seventh semester, pursuing a degree in International Relations. Alongside my academic pursuits, I am actively engaged in the professional field as a content writer at the Rangeinn website.