Consumer Internet Insights: Middle East Market Analysis

1. Cab: After a first wave of rapid growth, MENA’s cab hailing market is ready for the next wave of expansion into smaller cities and realize its huge potential

Published on: Sep 2018

MENA region’s online cabs market has grown rapidly to reach similar scale as its better funded regional peers in India and SE Asia in a short time. Yet, market is still heavily underpenetrated- as shown by current low penetration of cab usage amongst smartphone users. Players who seize the opportunity to deliver and improved driver/customer experience and also expand into smaller cities to solve for the creaking transport infrastructure will likely reap huge rewards.

2. Cab: Careem has been able to deploy capital more efficiently than peers; its funding needs are likely to grow due to planned diversification

Published on: Sep 2018

Till date, Careem has utilized its funding amounts more efficiently than its Asian peers such as Ola, Grab. However, Careem is increasingly looking to expand into near-core and beyond core sectors like its peers (for e.g. logistics and payments). Entry into these cash-hungry businesses will likely drive up its need for funding going forward.

Sandeep Ganediwalla

Sandeep is the Partner of Redseer Strategy Consultants looking at the Middle East and Africa. He has 13+ years of experience in consulting and technology.

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