Careem is a ride-sharing and delivery service providing Dubai-based multinational company. The technology and super application started its business operations in 2012. Today, we’ll discuss the SWOT analysis of Careem; it outlines strengths and weaknesses; opportunities and threats that the company has to face; as a business strategy analysis example company.
The products and services portfolio of Careem
- Ride-sharing
- Food delivery service
- Mobile application
- Super app
- DineOut
- micro-mobility
- Subscription-based services
Parent Company of Careem
- E&
- Uber
Statistical facts and figures of Careem
- Annual revenue: 1.2billion USD
- Employees: 5678
- Net worth: 3.1billion USD
- Network: 70cities
- Market: 10countries
Competitors of Careem
- OLA
- Uber
- Lyft
- Gett
- Bolt
- Easy Taxi
- Buseet
- Ridecell
The SWOT analysis of Careem would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Careem SWOT analysis as a business strategy analysis example company as follows;
Strengths of Careem
Some of the main internal strengths in the Careem SWOT analysis example company as business strategy analysis are as follows;
Large Network
Careem has established a very large network. According to an estimate, the ride-sharing brand is operating its business in over 70 cities and 10 countries across the world. The large market network allows the company to offer ride-sharing and food delivery services providing services to various segments of the customers.
Portfolio
Careem has developed a very large product and service portfolio comprising ride-sharing, food and grocery delivery, online mobile payment, mobile application, and super app. The large service portfolio helps the company to serve the diverse needs and requirements of the targeted customer market.
Tech Development
Careem is a tech company. The ride-sharing company invested a significant amount of capital resources in artificial intelligence, data analytics, algorithms, automation, and integration. The technological development helps the company to keep up with the growing market trends and strengthen its market position.
Strategic Alliance
Careem developed strategic alliances and partnerships with Uber and E&. In fact, they acquired the company for roundabout 3.1 billion USD in 2019. The strong financial and technological backing helps the company to sustain various types of market challenges.
CSR
Careem is a highly corporate socially responsible brand. The company has been engaging in various types of charitable activities, and socially, and environmentally sustainable initiatives. It shows the company’s strong commitment to the society and the environment.
Workplace Culture
Careem has earned the market reputation for developing and maintaining a creative and innovative working environment and culture. The ride-sharing company has open and transparent communication, flexible working hours, and a community network.
Weaknesses of Careem
Some of the main internal weaknesses in the Careem SWOT analysis example company as business strategy analysis are as follows;
Limited Market Share
Careem is only operating its business in 10 countries and 70 markets across the world. It has a very low market share as compared to other competitive ride-sharing brands. However, the limited market network restricts the company’s growth rate and market share.
Over-reliance on Contract Drivers
Careem heavily relies on the contract workers and drivers to complete the ride, and the company earns a specific amount of commission for every ride. In order to attract the attention of customers, the brand sets lower ride prices and it decreases the profit margin of the company. Drivers would easily shift to other platforms as soon as they get a better offer.
Opportunities for Careem
Some of the main available opportunities in the Careem SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Careem should expand its ride-sharing business market into new regions, countries, and markets across the world. The African, Asian, Southeast Asian, Middle Eastern, and European markets hold great growth potential for the ride-sharing business. It would help the company to increase its market share, brand influence, and profitability.
Portfolio Expansion
Along with the market expansion, Careem should also expand its ride-sharing service business with new services like luxury vehicles, bike rides, wheelchair-accessible rides, and others. A variety of ride services would help the company to serve the diverse needs of customers in different situations and circumstances.
Technological Development
Careem should keep investing in research and technological development. It could be in the form of driverless vehicles, autonomous driving technology, electric vehicles, and others. It allows the company to make the ride experience safe and secure.
Strategic Alliance
Careem should develop strategic alliances with other ride-sharing companies in various markets across the world. It allows the company to amplify its market share, and expand its operations into cities across the world.
Threats to Careem
Some of the main potential threats in the Careem SWOT analysis example company as business strategy analysis are as follows;
Tough Competition
Careem is facing tough competition from other ride-sharing competitive platforms OLA, Lyft, and Bolt. They all have established a strong market presence and a loyal database of customers. Their market presence and growth rate decrease the company’s sales, revenue, and profitability.
Regulations
Careem should comply with transportation and road safety regulations of different countries. Any type of accident or incident due to regulatory non-compliance would significantly damage the company’s reputation and growth rate.
Data Privacy
Careem deals with the private data of a very large customer market in various countries across the world. It poses a great responsibility on the company to protect the interests of customers by keeping their personal safe and secure. Otherwise, it would jeopardize the company’s reputation and losing the trust and confidence of customers.
Conclusion: Careem SWOT Analysis Example Company |SWOT Analysis of Careem |Business Strategy Analysis
After an in-depth study of the swot analysis of Careem; we have realized that Careem is the world’s leading technology and ride-sharing company. If you are learning about Careem SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
