Insights into careem and non-careem rickshaw drivers

Degree

Master of Business Administration

Faculty / School

Faculty of Business Administration (FBA)

Project Type

MBA Research Project

Abstract / Summary

The research conducted for this MBA Project aims to explore the rickshaw category Tezz of Careem Pakistan and to identify the problems and issues from the suppliers' end. The research was undertaken comprehensively by consulting secondary sources as well as conducting primary research through questionnaires, in-depth interviews with Careem captains and non-Careem rickshaw drivers. The secondary research highlighted that due to changes in the technology and the introduction of the digital era, the transportation sector is getting heavily dependent on ride-hailing services like Careem and Uber. With the advent of hi-tech smartphones, the consumers are looking for fast and convenient modes of transport due to which there is an increase in demand for these types of services. Furthermore, the research also focused on understanding the global trends and the prevalence of evolution of the transport sector in countries abroad. Another aspect of the secondary research focused on understanding the local Pakistani industry and how it serves as a huge potential for the growth of ride-hailing services like Careem. Primary research was undertaken under qualitative and quantitative heads. Qualitative research through in-depth interviews of Careem Captains was conducted to understand the lifestyles of rickshaw drivers, their consumption habits, attitudes towards different customers, preferred routes, preferred mode of entertainment, weekly and monthly revenue generation, fuel and maintenance expenditures, understanding of Careem app and maps, perception about Careem branding on rickshaws and their motivation to stay and work for Careem. Quantitative research done through survey questionnaires helped us gauge similar characteristics for non-Careem rickshaw drivers and why they were not willing to switch to Careem. Overall, based upon the findings of our secondary and primary research, we provided recommendations to Careem as to how to attract new rickshaw drivers and how to retain the existing Careem Captains. In addition, we also provided a driver profile to Careem where we identified the suitable characteristics of the target group that Careem should target to recruit more captains. We have discussed these recommendations in detail in Chapter six of the report, but briefly, they were: 1. Demographic, Psycho-graphic, Behavioral and Geographic traits of the target market; 2. Partner with Mobilink to provide captains with cheap data packages; 3. Shift budget from motivational activities to boost the Captain's bonus amount; 4. Partner with repair shops and award free maintenance to Captains based on their performance; 5. Every Captain should be trained at the Head Office by Careem HR department; 6. Measure the Captains' satisfaction every month; 7. Train Captains to use maps; 8. Give a bonus to a Captain for every new captain they help in inducting; 9. The model can be only made sustainable in the long term by shifting from a bonus based model to a heavier ride revenue-sharing model; 10. Develop more Careem area offices. To sum up, it is evident that the transport sector of Pakistan has seen a shift over the past years and is continuously evolving with new trends emerging. Our research has taken place in Karachi, and it will serve as the basis for future platforms for similar cities like Lahore, Islamabad in terms of rickshaw booking and rickshaw rentals. With minor changes which we will specify, Careem could also implement these changes across cities which are at a lower level in terms of customer footfall and revenues or even areas which are currently untapped. Our aim is to provide research which would provide the roots for future strategy formulation.

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