Careem: Mobilizing a Solution to a ProblemCareem, the Middle Easts first and leading taxi booking app$-$based service, was created as aresult of two entrepreneurs attempts to solve a region wide problem. Mudassir Sheikha, a $39-$year old Stanford educated Pakistani, and his Swedish colleague Magnus Olsson travelledextensively in their capacity as consultants for McKinsey & Company. During their travels tothe Middle East and North Africa $($MENA$)$ region, they struggled to find an easy, quick,efficient, and reliable means of transportation. It also quickly became apparent that althoughUber had provided a great solution to commuters needs in many markets around the world, ithad not yet entered MENA region, and this presented an attractive opportunity. Inspired bythe global transformation of taxi$-$booking services and recognizing an under served market,the two$-$tech savvy consultants launched Careen in the city of Dubai, the United ArabEmirates, in $2012.$ Although Careem was initially launched for business customers, thecompany soon found that its users were booking rides for personal use, like airport trips,schools drops, and pick$-$ups.Expanding RegionallyCareem is touted as one of the UAEs most successful start$-$ups, with growth of $30$ percentmonth on month. Within five years of its launch, it has expanded to $60$ cities across $11$countries, claims over $10$ million registered users, and has over $250,000$ contract drivers.Careem has ambitious plans to become leading transporter of people and things in the MiddleEast. With car ownerships as low as $2$ to $5$ percent in some countries and a large populationof $700$ million people in the region, there is a potential of between $150$ million and $200$ milliontrips a day a huge opportunity for Careem.Taking the Home AdvantageAs a homegrown player, Careem has unmatched insight into the regions consumers,topography, infrastructure, neighborhoods, roads, and local commuting needs, allowing it toquickly act on the opportunity to develop better maps than and have a competitive advantageover Uber. Many cities and their neighborhoods in the region were inadequately covered byGoogle Maps and Nokia Maps, so Careem sent its own team to build a location database. Thebrand name, which means generous in Arabic, also worked very well with the localconsumers.Playing the Local FavoriteClose familiarity with the cultural and traditional values helped Careem to serve the regionalmarkets well. In Saudi Arabia, where women were banned from driving until October $2017,$Careem had a massive female following, making up nearly $80$ percent of its customers. It evenintroduced a pre$-$booking facility for women so they could conveniently plan their trips. InDubai, Careem launched its Ameera services, a ladies$-$only ride with a woman chauffer. InSeptember $2016,$ in Saudi Arabia, Careem offered a special service during Eidul Adha, apopular Muslim festival during which an animal, usually sheep or a goat, has to be sacrificedand distributed to family, friends, and the poor. This requires trips to farms, where they aresacrificed and then brought home. Careem offered to provide this service: its drives got theanimal, sacrificed it for the customers, and brought it to customers homes according to thetradition. In situations where customers wanted the live animal to be transported to theirhomes, Careem arranged for pick$-$up vehicles for that too.Dealing with the RivalryUber entered the Middle East market in $2013$ as a global brand with international appeal,changing the competitive dynamics in a growing market that presented an attractiveopportunity. Both Uber and Careem adopted competitive strategies to capitalize on thatopportunity. Careem already had a strong hold on the market due to its first$-$moversadvantage and local orientation. Due to its global dominance, Uber was able to raise $$15$billion in venture capital compared to $$425$ million that Careem had raised. Faced with achanging competitive scenario and an aggressive opponent, Careem focus on providing morelocalized solutions to the region, including better maps, pre$-$booking services, dedicated callcentres, and a varied fleet. Careem claims that over services operate only as a limo service,but it offers a different ride experience for everyone. For example, in Dubai, Careem offereddifferent types of rides: Economy, Business, Careem Kids, MAX, First Class, and Ameera.While uber seeks global dominance, Careem is concentrating on being a leading regionalplayer with a strong focus on local needs and wants.Source: Adapted from Entrepreneurship: Successfully Launching New Ventures, PearsonEducation $2019.$QUESTION $1$a$)$ Identify the market gaps that Sheikha and Olson filled by launching Careem in theMiddle East.b$)$ What role did their personal commuting experience in the region play in identifying theopportunity?c$)$ How being a local player helped Careem to cater the needs of users in the region?What factors have contributed to its regional popularity?d$)$ As the taxi$-$booking segment matures in the Middle East, how relevant will factors likeinnovativeness and first$-$movers advantage to be sustainable and continuoussuccess?e$)$ Considering the strong competition from the global leader, Uber, do you think Careem