ISLAMABAD: Ride-hailing services in Pakistan need official patronage, regulation for growth, according to WealthPK.
In the absence of an adequate public transportation system in developing countries, the number of ride-hailing services is rapidly increasing to fill the gap amid rising commuting issues in urban centres.
The ride-hailing services rely solely on advanced technology and modern communication means to enable customers to book their rides online.
With the increasing urbanisation in Pakistan, public transportation systems in the cities are no longer able to sustain commuting pressures.
Although the government has made significant investments to develop urban transport infrastructure such as launching metro bus services in Lahore, Rawalpindi, Multan, Karachi and Peshawar, and Orange Line Train service in Lahore, these initiatives cannot entirely tackle the rising commuting problems in mega cities.
According to a Japan International Cooperation Agency (JICA) research, non-public transportation accounts for 63% of all forms of mobility, including rickshaws, motorbikes, personal vehicles, traditional taxis, and others.
This has resulted in a bigger disparity between the demand for and the facilities provided by the public sector. To bridge this significant gap in offering effective and convenient transportation, private ride-hailing companies have established their online taxi services in Pakistan, reports WealthPK.
Since the arrival of the world’s largest ride-hailing service providers, Uber and Careem, in Pakistan, the digital transportation sector has continued to grow. They provide transportation booking services that allow customers to specify where they wish to be picked up and dropped off.
One of the main reasons for the success of these services is an easy access to the Internet and developing digital amenities in Pakistan, WealthPK reported.
Ibrahim Manna, Managing Director Global Markets of Careem, said, “Careem’s investment has surpassed $100 million with over 236 million rides in Pakistan. There are nearly nine million registered customers, with 64% being male and 36% females.
It has provided around 800,000 individuals with income-generating opportunities.”
He added that over 3.3 million female customers across Pakistan took around 20 million rides to reach their desired destinations.
“The ride-hailing service has also provided equal job opportunities to women as we have 1,586 women registered captains (drivers).”
“The Covid-19 pandemic has harmed every sector associated with mobility, and this industry is no exception. People have avoided taking rides over the past two years because of significant health concerns.
As a result, the majority of our captains have quit their jobs. However, now we are in a recovery phase since there is a shortage of captains to fulfil consumer demand,” he explained.
Careem’s managing director of global markets further stated that because there is no such regulatory framework in the country, any company may enter and cause a significant imbalance in the market because they do not pay any fees or taxes to the government at the start.
Manna demanded establishing a regulatory framework to help create a level-playing field for all the market players.
“The government of Pakistan should recognise the ride-hailing as an industry, as is the practice around the world.
The development of a regulatory framework will give equitable opportunities for all the industry players, he suggested, pointing out that a majority of countries in the Middle East have already regulated it as an industry.
However, Manna said that they are working with the government to develop ride-hailing as an industry to strengthen the country’s transportation sector.
“We have also been collaborating with the government to launch a public-private venture in Pakistan on the pattern of the UAE to provide best possible transportation services to the people,” he said. -INP
