Chapter 1

Introduction

We live in an age of rapid innovation, technological breakthroughs and products that focus on destroying traditional industries and forming new ones, while catering to the same target market. A similar situation arises when we think about Careem and Uber’s launch in Karachi – a city marred by constant political instability, lawlessness and low levels of investment. Despite all their challenges, Careem and Uber have thrived in this market, not only improving the way an ever expanding middle-class travels but also providing a viable investment alternative to many who wouldn’t invest in traditional asset classes.

Therefore, this paper analyzes Careem and Uber on two fronts. First of all, a qualitative analysis is provided describing how and why these services will continue to expand at rapid pace in Karachi’s market. Secondly, a quantitative comparison will suggest which of the two services would provide the customers with a higher return in present value terms. Financial techniques such as ROI, NPV and Payback period among others are used to determine which service offers better returns to the investors.