How Careem Business Model Can Shape Your Super App Vision?

Ever wondered how a simple ride-hailing app grew into one of the most successful super apps in the Middle East?

Careem is a company that started by offering basic taxi services & now offers everything from ordering food & groceries to managing payments & daily services all in one place. Its transformation provides valuable insights to businesses aiming to scale and diversify.

Central to its success is the Careem business model, a unified platform strategy that combines multiple services to address everyday needs. From “Go Anywhere” to “Eat Anytime” to Get Anything” to “Pay Anyone”, each service pillar reflects a smart use of technology, customer convenience, and regional relevance.

Whether you are a startup founder or an established entrepreneur, exploring Careem’s business model can help you expand your own digital ecosystem. So, if you plan to build a super app, Careem is an ideal example. This blog will provide everything you need about the Careem business model, revenue streams, and other aspects.

What is Careem? – Tracing Its Milestones Over Time

Careem is a Dubai-based super app that offers a suite of services, including ride-sharing, meal delivery, and online payments. It operates in more than ten countries across the regions such as the Middle East, South Asia, and Africa.

The above table explains the main milestones in Careem’s journey. These achievements demonstrate the company’s commitment to quickly adapting technology to stand out in the market.

How Careem Delivers Its Services?

Careem enhances its apps for users, drivers, and merchants by utilizing technologies like cloud computing, AI, machine learning, blockchain, and big data analytics. These technologies enable personalized communication and smoother interactions, resulting in a better user experience.

Here is how Careem deliver services and users interact with the app,

• Users start by registering on Careem’s app or website.
• Users select the service that they want.
• Users place an order/booking request and pay for it using their chosen payment method.
• Vendors receive the order/ride request from the users, who accept or decline it at their convenience.
• The Careen app assigns the order or ride to the registered delivery or service partner.

Apart from this, Careem users can also explore other services it offers, such as –

• Car Sharing
• Bike Sharing
• Taxi Booking
• Food Ordering
• Logistics for Companies
• E-Commerce Shopping
• Parcel Delivery
• Recharge
• Send Credit

What Does the Careem Business Model Canvas Include?

From a simple idea to the leading taxi booking app in the Middle East, Careem’s success lies in its perfect business model. For anyone looking to launch an on-demand taxi booking app like Careem, understanding its business model becomes crucial to thrive in a competitive market.

Here is the in-depth exploration of Careem’s business model:

1. Value Proposition

Careem allows users to access all services without needing to install separate apps, ensuring seamless interactions.

• Customers

  Careem allows customers to use multiple services and secure their payment options.

• Captain

  It offers flexible working hours to drivers, competitive earnings, and proper training to increase their skills.

• Merchants

  Small and medium merchants can quickly register on the platform to gain experience, expand their customer base, and increase profits.

2. Customer Relationship

Careem builds strong customer relations by providing various services to stay competitive and retain them. A breakdown of the insights into better customer relationships is mentioned below-

• Technical Support

  Every user, merchant, and driver gets a separate panel or app with personalized features.

• Social Media

  Careem engages its customers using social media and updates them with its latest innovations and achievements.

• Reviews and Ratings

  Genuine feedback builds trust between users and admin. It helps Careem enhance service quality and identify areas for improvement.

• Reward Program

  Careem benefits its repeat customers by offers and points for the next ride.

• Careem Plus

  Careem’s subscription model costs AED 19 ($5.17) per month. Subscribers receive an instant 10% credit on ten rides per month. Additionally, food and quick groceries are delivered free of charge on all orders above AED 30 ($8.17).

• Careem Packages

  Careem packages provide customized plans for loyal customers by offering bundled services at a discounted price. Other benefits of these packages include minimum fares, additional features, or priority services.

• Careem’s Location Database

  Google Maps sometimes faces technical issues, so Careem can create its map to track directions.

How Has Careem Become a Super App?

Careem started as a Dubai-focused ride-hailing app. Over time, it became the Middle East’s first unicorn, with a US $3.1 billion today. What is the secret behind this transition from being a ride-hailing startup to the top super app in the Middle East?

It’s the evolution of new services to its advantage. First, it offered grocery delivery, followed by food delivery service integration. Gradually integrating different services, Careem created a single platform for users to improve the entire app experience.

1. Ride-Hailing Services

Careem’s success in the ride-hailing market is evident. Uber acquired Careem to establish a stronghold in the Middle East, which is a testament to its success. Careem’s understanding of local customers and its services based on their pain points sets it apart from competitors.

Booking a ride on Careem is simple and quick. Users can also follow their drivers in real-time and pay directly from the Careem application.

2. Food Delivery Services

Careem’s application lists over 9,500 restaurants. Food delivery is one of the prime services Careem provides in the on-demand food industry. Furthermore, Careem ensures that customers have a wide range of options to scroll through menus, place orders, and track their orders in real-time.

It mainly includes two categories: ordering food only and dining out. The app provides seamless UI UX for ordering food and payment options like cash, cards, or Careem’s digital wallets.

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3. Get Services

Get services is a vital component of Careem’s super app, which was introduced to facilitate the delivery of everyday essentials directly to doorsteps. The app includes everything from grocery deliveries to salon and spa bookings.

Providing such services helps users manage their busy lifestyles more efficiently while enjoying a streamlined and user-friendly experience. The get services include –

4. Pay Services

In 2020, Careem integrated the payment vertical after acquiring the UAE based bike-sharing startup. This allows users to add money directly to their wallets or withdraw it immediately to their banks.

You can send money abroad, pay bills, split your payments, or donate everything in just one click. Careem provides payment options such as Google Pay, Apple Pay, or a Debit/Credit card to pay seamlessly.

With its versatility in offering ridesharing services, grocery delivery services, food delivery, dine-out options, and pay services, Careem has transformed the meaning of an application through its Super App strategy. But this is not the end – another essential aspect to explore is the strategy of revenue channels.

Revenue Channels of Careem

Careem has created a sustainable ecosystem that drives growth and profitability. It generates revenue through multiple offerings catering to customer pain points. Here is a closer look at careem’s business model.

1. Commissions

Careem earns commissions on each order placed on the super app across multiple services.

• From Delivery

  The company’s primary source of revenue is commission from deliveries. It receives a fixed commission percentage from each order or delivery of groceries, food, or medicine.

• From Digital Payment

  If you’re transitioning above AED 400 ($108.90) on all routes, incur no fees. But if you transact below AED 400 ($108.90), transaction fees apply for each country, which is-

  • Pakistan– AED 7.35 ($ 2.00)
  • India, Philippines and U.K.– AED 5 ($ 1.36)
  • Europe– AED 10 ($ 2.72) for transactions less than AED 400 ($108.90)

• Share from Partners

  Careem earns commissions from its partners, such as riders or restaurant owners registering on its platform.

2. Surge Pricing

Surge pricing helps during periods of high demand or low driver availability, such as rush hours or events. Users receive a push notification to either wait for the prices to cool down or, for immediate service, choose higher fares. The increased cost ranges from 1.5x to 3x.

3. Subscription Plan

The subscription plan is also known as Careem’s Plus, and the Plus members save AED 300+ ($81.68 +) monthly. Careem offers AED 19/ month ($ 5.17) for rides, food, groceries, dining out, and many more. Moreover, there are three easy steps to follow to subscribe to the Careem Plus plan. The steps are-

Step 1 – Click on the Careem Plus icon on your application.
Step 2 – Confirm your subscription payment by tapping “subscribe now.”
Step 3 – You’re successfully a member of Careem Plus.

Moreover, the following perks of subscription are-

• 10% back on ten rides.
• Unlimited free delivery of food
• Unlimited free delivery on groceries
• Deals and discounts on DineOut
• 10% off on laundry

How Much Does it Cost to Build an App Like Careem?

If you’re a newcomer to the Middle East and want to build a business like Careem, it’s crucial to understand the key factors influencing the cost of super app development.

The overall estimated cost to build a Careem business model depends on many factors stated below –

How Does aPurple Help You Build Your Super App?

Turning a super app idea into a market-ready product requires a deep understanding of user behaviour, seamless technology integration, scalable architecture, and an experienced team of developers.

At aPurple, we specialize in building robust, multi-service platforms tailored to your business goals. Whether you are starting with a ride-hailing service like Careem or planning to integrate some other fields, our team can help you create a flexible and feature-rich super app.

We deliver complete support, covering business analysis, UI/UX design, backend development, API integration, testing, and maintenance. Our developers create intuitive and secure apps that adapt to user needs and market trends. With industry experience and a customer-focused approach, we help startups and enterprises launch scalable digital products.

If you aim to build the next big thing in the on-demand economy, aPurple is your trusted mobile app development company. Let’s make your super app: smarter, faster, and better.

Author

Paresh Sagar

Paresh Sagar, the innovative CEO of aPurple, is renowned for his passion for experimenting with new business models, technological aspects, and software solutions. His knowledge and insights are a must-read for entrepreneurs, tech experts, and avid readers alike, offering valuable perspectives on the ever-evolving landscape of business and technology. With a keen eye for innovation and a dedication to sharing his expertise on business digitalization, Paresh continues to inspire and inform professionals across the globe.