Careem a private ride-hailing service since its launch has seen its demand graph going up. Now that the world has come to a standstill business models and economists are predicting a decrease in demand for many services for up to a year. This has caused many businesses to terminate their employees and reduce the workforce to meet the expenses with no income.
Careem has been a great source of income for many people, according to a letter written by CEO Mudassir Sheikh
“There is no easy way to say this, so I will get straight to the point: starting tomorrow and for the next three days, 536 of our colleagues who make up 31 per cent of Careem will leave us. We delayed this decision as long as possible so that we could exhaust all other means to secure Careem, Over the last seven weeks, the company has looked critically at its cost base and stopped all non-essential spending, which also includes indefinitely halting the new benefits announced earlier in the year. While we have achieved significant savings from these efforts, they have sadly not been enough.”
Further adding the CEO said,” Today we’ve had to ask 536 (31 per cent) of our colleagues to leave Careem. The impact of COVID-19 on our business and industry has been severe and has forced us to change the shape and size of our organization so that Careem can be here for the long-term – which we will. Letting people go from Careem was a last resort. These are the people that helped build Careem and create massive change and impact for our communities across the region. We greatly value their work and dedication and sincerely hope we will be able to hire those people back once we build a sustainable basis for our future,”
Careem has estimated that the demand will return back to normal in late 2021. They have paused their plans to launch their Careem bus service due to the situation and planning to first recover losses.
“The economics of the mass transportation business have improved but remain challenging, and at this time, we need to accelerate our investments in deliveries and the SuperApp,” the letter circulated by Mr Sheikha reflects.