It seems that the reports regarding the much-anticipated bus service of Careem had either been misconducted or the firm had changed the decision recently as the famous ride-hailing service is planning to get into the intercity transport market with its bus service instead of getting into the intracity market, where SWVL and Airlift have already gained first mover’s advantage, as per sources.
This development might come as a significant disappointment to the customers who were waiting for benefiting from the surging competition in the sector.
As per sources, there are solid reasons behind the plan of Careem to not get into the intracity market. Apparently the intercity market is not more lucrative for Careem to get into at the moment. Airlift and SWVL are already competing against each other fiercely. The average trip fare being charged is not that much as it is and more competition in the market would generally mean that it would stay the same or might even drop.
Also Read: Careem Bus Service Launches in Karachi
In the intercity transport market, the fares are high and the routes are simpler, and hence, it makes more business sense to get into that market. The intercity transport market has got already successful players like Daewoo, Skyways, etc, but Careem seems more willing to have an edge on them. Also, Careem plans to compete on the quality of service and not on price in that particular market. It believed that in comparison to the other players, there, he smart buses of Careem offer a much better service to the intercity commuters.
Another reason for not getting into the intracity market is that there are concerns that Careem might end up jeopardizing its own market share if they launch the bus service there. After all, the consumer who now has the option to take Airlift or SWVL for daily commute is the same the consumer who was once depending on Careem and Uber for the same purpose.
Careem has not issued any official statement on this matter.