Business

Competition intensifies in the taxi-hailing world

Use of promo-codes on the rise, customers reap the benefit

Shahram Haq September 16, 2016

Use of promo-codes on the rise, customers reap the benefit. PHOTO: AFP

LAHORE: Sana Dar, a young professional based in Lahore, is a frequent user of technology apps to meet her transport needs.

Until a year ago, her only choice was an auto rickshaw service that was widely available in the city. But 2016 has brought in more choices and hence, a competitive environment after the addition of Middle East-based Careem, US-based Uber Technologies, and Albayrak or A-Taxi, the Turkish company.

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“I feel safe, and enjoy my journeys with the new apps,” Dar told The Express Tribune.

Sana is not the only female who has switched from the old-traditional mode of transportation in the city. Several others including students, professionals, house-wives are now frequently making use of Careem, Uber or A-Taxi, largely due to comfort and convenience.

As interest rates touched a historic law, cost of car financing went down, giving birth to greater vehicles on the road to cater to these companies. The plunge in global crude oil prices only added to the advantage.

Additionally, stiff competition, coupled with frequent offers and different promo-codes that sometimes offer free rides to attract more customers, are becoming an important tool for majority of users to decide which app they should use t.

“It does not matter to me which one I use. The service isn’t that different. Promo-codes help me finalise my choice,” Dar added.

Careem and Uber are currently competing in Pakistan’s two largest cities - Lahore and Karachi. A-Taxi currently does not dish out similar promotions and charges flat rates.

Uber Pakistan Head of Expansion Zohair Yousaf said that promo codes and other discount offers are essential to attract masses and convert a temporary customer into a permanent one. “The company uses the strategy in certain cities. It encourages the riders to avail free or discounted rides to test and ultimately shift towards the service,” Yousaf said.

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Careem Pakistan Managing Director Junaid Iqbal said that promos are a way to lure new customers.

However, he added, “Our business does not rely on promo codes. It relies on long term product innovations and ensuring the service matches most prevalent user [requirements].”

A-Taxi, however, is competing with flat rates, but there is a chance that the company will start offering promo-codes in the future.

“Right now, we are not offering any discounts to our customers as our basic idea is to charge a fair and uniform price all over the city so every customer feels equal,” said Albayrak Deputy Managing Director Ahmet Yildrim. “It is possible that we might start promo-code offers in future,” he added.

Published in The Express Tribune, September 17^th, 2016.

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COMMENTS (5)

Disgusting | 8 years ago | Reply I had the misfortune of using Careem services. It was awful. Both drivers were utterly indisciplined and rash. I let them know both and decided never to use this third rate taxi service.

Ali S | 8 years ago | Reply Karachi doesn't have any sort of functioning public transport system for most of its 20 million people (who are poor or lower middle-class and think twice before taking a rickshaw at a haggled-down price, let alone an expensive smartphone-ordered fixed-rate taxi), I don't think Careem, Uber or any of these services will be useful for anyone apart from the upper middle-classes or elites. Pakistan needs a proper urban transit system (preferably rail-based) for its large cities - the Metro buses in Punjab are a step in the right direction but it's more eyewash than thoughtful long-term planning.

VIEW MORE COMMENTS

Jamal | 8 years ago | Reply Rather than spending on and spreading means of mass transport, govt is allowing private companies to take on the transport business. Not a win for the public. Also, as these companies (Careem, Uber etc) are foreign owned, they will be taking a huge chunk of profit abroad.

Adnan | 8 years ago | Reply I must say Careem type things are still expensive though for any middle class person.. they take un-necessary fare from people... I might be wrong on it but i think allot of people would agree with this statement.. Why Pakistani people are greedy for money ? and they couldn't thanks to ALLAH what they have.. so i my case its not for low class people... Pakistani people must think for the poor people if they started these kind of innovations. Thanks

Zahid Khan | 8 years ago | Reply Now what has " low global interest rates for car financing" to do with Pakistan, where financing is still for the elite few? And what are the numbers of Uber and other smart app taxis compared with auto rickshaws and the few taxicabs in Lahore? What happened to the hilarious rickshaw app ventures out of LUMS kinds of "top rated" universities? How many people actually have smartphones in the first place, and also use them frequently with high data charges and expensive download quotas? There is a reason why the local Savaree type operations folded, and some got "acquired" by global firms with little real street experience. Our elite friends and family "entrepreneurs" have gone the way of related NGO begums as foreign aid dried up. Yes, some got lucky as glorified employees.

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