Some apps are synonyms for the word- Fantastic, and apps like Careem are one of them.
When it comes to make a list of top-super apps around the globe, especially in UAE, Careem is on the app. Its concept is like this – Go Anywhere, Eat Anytime, Get Anything, Pay Anyone.
In one app, you’ll find multiple options that make an app like Careem – The Everything App. What are your views on what made Careem create the storm in UAE?
Any Guesses?
Its answer is – the Careem Business Model, which makes it one of the highest-earning apps in the UAE. It started as a ride-hailing app, and now by the time it has become a super app.
If you also have a similar idea to develop a ride-hailing app like Careem, then it would be best to understand its business model.
Here, we have created an article to make you comfortable to understand Careem business model and reach your goal.
Fasten up your seatbelts, and your ride to learn more about Careem starts from here.
The whole story starts with the word Careem, which is Arabic and means – generous, compassionate, and kind.
It is a popular name in the Arabic World, so the founders- Mudassir Sheikha and Magnus Olsson- decided to use it for their app. The Careem app was launched in 2012, and in 2013, it got its third founder, Abdulla Elyas.
Since its launch, Careem spread its wings in 10 countries with 2.5 million captains and 50 million customers.
Earlier, it was launched to touch customers’ pain points while travelling from one point to another and started for corporate taxi bookings.
Recently Careem App shares some statistics from 2022 and there were 505,856 burgers delivered to hungry clients and 24,000 rides to World Cup stadiums.
But now, it is a super app you can use for multiple purposes, from booking a ride to ordering a car rental or grocery items to pay for the pharmacy.
In 2019, UBER acquired it for $3.1 billion USD, making it one of the biggest unicorns in the Middle East.
Now Careem has a $400 million investment from Etisalat e&. As joint efforts, Uber and e& the Careem app are exploring new verticals to make the app superior to any other super app development in UAE.
Here are some glimpses of facts and stats about an app like Careem
The Careem has taken the whole MENA region by storm, and its journey to becoming a super app is quite exciting.
It started with the ride-hailing business, but now it operates in multiple domains, including taxi booking.
Its business model covers all kinds of customers. The Careem business model is a great inspiration if you want to do your business on the same concept.
Regarding its business model, it is initially commission-based. It earns from the commission from each ride. So, here are the details
On each ride booked through its platform, the Careem app charges a fixed commission, which is approximately 20% of the total fare paid by the customers.
One of the potential revenue streams of ride-hailing apps like Careem is- Car Rental. Without any deposit and paperwork, a customer can rent a desired car hassle-free on a weekly, monthly, or daily basis.
During some specific hours or if there is more demand for rides, Careem implements surge pricing. Via increasing the fare, it ensures ride availability and gives incentives to the drivers.
The dynamic pricing brings additional revenue for the Careem ride-hailing app and its drivers.
Careem Plus is a subscription plan that comes with multiple advantages for the customers. The members can save more than AED 200 per month using Careem+ services.
At AED 19/month, a user can save on rides, food, groceries, home services, and more. It works superbly in two ways: customer onboarding and additional revenue generation.
It offers a dozen services that unlocked its revenue potential and made the Careem business model successful. Its key services are:
Every service generates great revenue and established Careem as a super app. Careem’s estimated annual revenue is $1.1 billion per employee, which is $203,000. These services hold a major portion in contributing to Careem’s revenue growth.
Careem owns a large user base that is enough for in-app engagement to attract brands for their advertising on its platform.
It includes ads showcasing on the app and partnering with brands for in-app promotions. Here, Careem makes money via advertising & promotion fees.
You will be surprised to know that Careem Pay’s fintech services were used by 286000 people the previous year with a $50 million top-up in Careem Wallets.
The above details are related to – how the Careem app makes money. In addition to the details related to Careem’s business models, you must also know its key modules.
Careem’s passenger app is user-friendly and offers super convenience to its users for ride booking. It is powered by GPS Ninjas that pick up the exact location of the customers and share it with the cab drivers.
It also offers the flexibility of choosing the ride’s time, i.e., Now or Later. Once the users choose drop-off, they get a confirmation code and their ride starts.
On the other hand, if they need to purchase something online, like food ordering home improvement, they can find multiple options using search filters. They can choose payment options like cash, credit, wallet, and more.
The driver or captain app is specially designed for cab drivers, and it makes their reach easy to the customer for pickup and work.
Using the captain’s app, they can make their profile, accept or reject the rides, manage their earnings, and communicate with their customers and others.
A driver needs to provide all essential details to register on the app. Before starting their career as Careem Captain, they need to finish the training with flying colors.
Using the merchant app, the business or product owners can start their business on Careem’s platform.
The app provides them with many useful features that help them grow the business, leveraging the advantages of the Careem business model.
They can create deals and promote their products on customers’ apps, track their earnings, manage inventory, and more, making their journey as an entrepreneur successful.
The Admin Panel is the command center and fourth pillar of the Careem Business Model to support the overall activities. It allows the managers to take care of all operations.
They can review the activities related to the passenger, captain, and merchant apps, including other tasks. Everything is at managers ‘ fingertips, from vehicle tracking to surge pricing or creating a coupon code to automate e-receipts.
The key revenue stream and module make Careem’s business model complete. For your information, here are the features of these app modules. It will help you to develop an app like Careem for business.
| Customer App | Captain App | Merchant App | Admin Panel |
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Developing an app like Careem is the right decision in the current scenario, where downloading a single app can solve multiple challenges for a customer.
If you want to develop an app based on the Careem business model, then it is your right to know the cost of developing an app like Careem.
If you want to develop a Careem super app, then it may cost you around $40,000-$50,000, or you can get an exact estimate from a taxi booking app development company in Dubai by sharing your requirements with them.
But if you want to develop a ride-hailing app like Careem or Uber, then the cost may vary on its version, such as
Here, you need to understand that there are multiple factors behind the app development cost, and these are:
All these factors contribute a lot to developing an app like Careem. The best idea for a fair cost estimation is to discuss your requirements with any of the top app development companies in UAE. The experts will help you end-to-end to make your idea a real app.
Careem has created multiple milestones since its launch. It has disrupted the taxi booking or ride-hailing trends in more than ten countries, especially in the MENA region, and still, it is in full swing to create a bigger storm than the previous one.
After acquiring UBER, it became a giant company and launched a super app for multipurpose. Its business model is a great inspiration to start a business. With the help of top mobile app development companies in UAE, you can also start a business on a similar concept.
If you have a mobile app idea and want to know more about it, we would be happy to assist you as we have helped multiple clients as a leading mobile app development company. You can contact us any time.
