Savaree will operate as a legal entity of Careem: Careem’s CEO Junaid Iqbal
LAHORE (Pakistan) – Dubai-based Careem, hailed as the ride-sharing app of the Middle East, made another move to expand its influence Wednesday by acquiring Pakistani carpooling startup Savaree. The move seems to be an immediate response to Uber’s move into the south Asian country.
Savaree was founded by Madeeha Hassan in Jan 2014. She was reportedly in talks with an investor before news of Uber launching in Pakistan surfaced and the deal fell apart. With the acquisition going through, Madeeha will be joining Careem’s global product team and be the company’s product lead for Pakistan.
Careem announced the move, with little detail but much fanfare, on its Facebook page. Savaree will maintain its brand and operate under the Careem umbrella.
Careem, which raised an impressive US$60 million recently, isn’t going to allow Uber to dominate the Pakistan market. The startup said today that it has acquired Savaree, ostensibly to enter the capital city, Islamabad, where the homegrown app has spent some time building up its driver base.
Careem is offered in 20 cities around the world. In a large swathe between Morocco and Pakistan, Careem seems like the most honorable opponent Uber faces, with equal ambitions and perhaps steadier growth.
Junaid Iqbal, Careem’s CEO for Pakistan, told that Savaree will operate as a legal entity of Careem. All its assets, including technology and intellectual property will be transferred to Careem. Madeeha Hassan, founder of Savaree, will join Careem as part of its global product team and will specifically lead product innovation for Pakistan. ‘We have acquired Savaree for the talent and immense local knowledge it brings along,’ he added.
Careem has been operating in Pakistan since October 2015 and covers Lahore, Karachi with recent expansion to Islamabad. It’s one of the largest and fastest growing app based car hailing service in the MENA region and raised $60 million last year.
In China alone, Uber is losing $1 billion a year to compete against local apps. There’s even a global alliance of ride sharing apps that connect with each other to help customers when they visit another country. Despite Savaree being a solid product, it’s almost certainly a talent acquisition. Madeeha knows the Pakistani market inside and out and her expertise will be needed by Careem to become the ride-hailing app of choice for customers.