Why Ride-Hailing Integration is better for the Future of the Egyptian Economy ?
What is it about integration that strikes fear into the hearts and minds of so many companies that operate on a global scale? Why do companies whose operations span continents continue to apply a cookie-cutter approach to their business model rather than try to adapt to each local market they operate in? It isn’t necessarily about profits, it’s about what’s easier. It’s easier for a global multinational to manage its operations when it knows that every market operates under the same set of rules, that all managers are given similar KPIs, and that the variables are consistent.
But the variables are never consistent, least of all when we waltz into the Middle East. Yet we saw a multitude of global entities that came into this market, and threw the weight of their brand names with the belief that they would dominate here the same way they did in the West; without having to change a thing. Imagine, if you will, a company born of this region with the same dreams of global scaling, only it’s a company that understands the power of localization. It’s a company that understand that in order to succeed in a particular market, you need to work on integrating your product and making sure all the involved stakeholders are playing ball and getting their end of the deal. What does that mean for the field of private transportation and sharing economy?
There have been Western global companies that have led the charge forward, but when it came to proper local integration, they’ve taken a backseat on a global scale. The power of integration comes through when it relates to this industry in particular, and what most companies ignore is the positive role that the government can undertake in making this business a success for not just itself, but for the captains and the users as well as part of the country’s transportation network.
How does it help the customers ?
Proper integration of services by a ride-hailing company like Careem with a national traffic / crime database allows the company to filter through its captains and ensure that all of them adhere to certain minimal standards to ensure that the customers are only exposed to the best talents available to take them from point A to point B safely and efficiently. Such an integration would enforce a regular filtering of all Captains in operation throughout the year to ensure no bad apples get into the basket.
We can’t talk about users, especially in a country like Egypt, without talking payment options, now can we? We may not be a credit card culture, but we certainly have our substitutes that are just as prevalent. Imagine if a company would integrate multiple local payment options within its network so your options were more than just debit/credit card and cash. Imagine if you could integrate your e-wallet. Imagine if you could integrate a service like Fawry or like Sadad. The possibilities would be endless in terms of how much it would open the door for users who were once before ostracized by a service that didn’t cater to their unique way of handling payments — integration would build bridges.
How does it help the captains?
Arguably the most overlooked stakeholder when it comes to any equation involving private transportation or ride hailing, the captains form the cornerstone of the industry and while they’re held under high accountability and standards to ensure their compliance with a company’s checklist of requirements, it does not mean they are by any means inconsequential in that equation.
So what’s in it for captains when integration is more wholesome and systematic? For one thing, the integration with national databases allows the qualified captains to really come out on top. This integration would allow us to root out any bad apples and ensure a consistent caliber of service, and those who pass this filter would be deemed as the best there are.
What about insurance? One of the biggest issues most regulators have with ride-hailing companies is that because none of the cars are owned by the company, whether or not they are provided with insurance is subject to the driver’s own discretion — which can of course create a domino effect of problems on a street and governmental level. How can integration solve this? If Careem were to integrate with local insurance companies and come together with them to define a minimum insurance requirement, thereby ensuring its affordability for most, and ensuring that all Careem Captains’ cars have it — it would go a long way in putting many stakeholders at ease.
How does it help the government?
A lot of people misunderstand the role of the government when it comes to regulating this industry. Many people find its intrusiveness unjustified altogether and that it creates bureaucratic hurdles where none should be, while many feel that the government must step in to protect those — such as the registered taxis — who have to pay their car locals, insurances and permits against private car owners who can make money the same through platforms such as Careem.
We certainly welcome and push for governmental integration on a multitude of levels and this encompasses everything from integration with tax, national databases and transportation systems. The integration within the Egyptian national tax system and national vehicle database is another aspiration of ours, thereby ensuring that our Captain earnings can be reported directly and without fault — providing revenue for the government and guaranteeing Careem Captains their rights as taxpayers. The integration with the vehicle database would work in parallel with this to ensure that every car that works within the Careem fleet has been cleared by the government as having paid its due taxes — ensuring no irregularities. Integration with national databases can also work to facilitate and improve our services, entities such as the Egypt Post have an impressive database of maps, networks and information that — if integrated properly with an existing platform such as Careem’s — could wildly improve the accuracy rate for location scouting, looking-up location and thereby improve drive time, and lead to more efficient pick-ups and drop-offs for the users and captains.
Lastly, imagine a governmental integration which ties in several transportation system networks together within the same platform. Using the Careem mobile application, you would be able to estimate your ride time from point A to point B, check on a bus route that can connect you to point C and see if there are tram or underground metro stations to transport you to a further point D — all in real-time with the purpose of ensuring integrated mobility for the customer.
Of course we can’t talk government without talking income and expenditure. There has been a lot of talk over the past decade or so about overhauling the transportation infrastructure in Egypt and pumping more money into the underground metro projects but let us consider the effect of this money and the benefits of an on demand economy for a country like Egypt.
Let’s say you, the government, have 700M$, and you would build a metro system that would employe 2,000 people and help 180,000 people commute per day. Sounds pretty grand, right? A success story, even — or is it? That same 700M$ could buy 25,000 cars — which would create work for factories to buy and manufacture those 25,000 cars and would pump out tax money in return. Taxation and revenue are nice, but that doesn’t answer the job creating opportunities nor the ability to shift large masses of people on a daily basis. How would 25,000 cars do this? If there are two shifts per car, this means that 50,000 people could work on those cars Vs. 2,000 in the metro and they would help commute more than 3.5 million people on a daily basis. Now that, is a success story.
Isn’t this a future that we deserve as Egyptians? Isn’t this integration a step in the right path when it comes to reshaping our streets and making sure that we cater local solutions to local issues? Some of you may disagree with this, and you would have your reasons, but one thing cannot be denied, and that is the power of localization and integrating yourself within a market; because you were born in it, you understand what it needs, and you know just how to provide it.
