Careem Pay's Metamorphosis: How a Ride-Hailing Service Became a Fintech Titan
The fintech industry is rapidly transforming in the Middle East, with Careem Pay leading the charge. As the fintech arm of Careem, the Middle East's first unicorn, Careem Pay's mission is to simplify people's lives by providing essential financial services as part of an everything app. In this episode of Couchonomics with Arjun, Madiha Sattar, VP of Careem Pay, shares her insights on building a fintech ecosystem in the Middle East, the transition from a ride-hailing app to an everything app, geographic expansion plans for Careem, and the problem of diversity in fintech.
A Little Bit About Madiha
Madiha Sattar is the Vice President of Careem Pay, responsible for strategy development and key partnerships for Careem's fintech business and products. Madiha has a versatile and ambitious career across finance, tech, and media. Prior to joining Careem, she worked in management consulting at McKinsey and in corporate strategy at JPMorgan. She also has experience as a journalist covering political, security, and social issues in Pakistan.
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Transition from a Ride-Hailing App to an Everything App
Careem, the Middle East's ride-hailing unicorn that was bought by Uber in 2019, has decided to spin out its Super App business and create a new start-up named Careem Technologies, with a $400 million investment from Emirates Telecommunications Group Company (e&). In the new deal, Careem will be divided into two companies: Careem Rides and Careem Technologies. Careem Rides will be owned entirely by Uber, with a focus on ride-hailing products, and will have 260 employees. Careem Technologies, which will have about 1,400 employees, will operate the Super App, along with all other verticals, and will be owned jointly by e&, Uber, and Careem's co-founders. The clear aim is to make its Super App unit the dominant business.
Careem has expanded its business to include food and package delivery, bus services, and credit transfers. With this move, it is clear that Careem's founders and its newest investor, e&, see the most potential in services that extend beyond ride-hailing. The Super App, which is currently available in 10 countries, combines all of Careem's products, such as food delivery, bike rentals, and financial services that allow users to send and receive payments, as well as third-party services like cleaning, into a single platform. The $400 million funding will be used to scale the Super App and build category-leading verticals in all key markets.
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Building a Fintech Ecosystem in the Middle East
Madiha shared her insights on building a fintech ecosystem in the Middle East, discussing how the region has been slow to adopt new technologies, but the fintech industry is now catching up with the rest of the world. She also discussed the challenges and opportunities of building a fintech ecosystem in the region, including the lack of infrastructure, regulations, and talent. She emphasized the need for collaboration among different stakeholders in the industry, including regulators, investors, and entrepreneurs.
Diversity is a significant challenge in the fintech industry, particularly in the Middle East, where women are underrepresented in leadership positions. Madiha discussed the importance of diversity in fintech and how Careem is working to address this issue. She also discussed the company's efforts to promote financial inclusion, including providing services to underserved communities and working with local governments to create more inclusive financial systems. Madiha emphasized the need for diverse voices at the table, particularly in the development of fintech products that are meant to serve a diverse customer base.
Reliable and Easy Payments are Crucial
As Careem's VP of Careem Pay, Madiha is at the forefront of developing the fintech business and products of Careem. She revealed that the company's mission is to provide essential financial services that simplify people's lives as part of an Everything app. The company is not trying to be a neobank, but a player that meets the daily financial needs of its users.
She mentioned that while Careem has been facilitating payments for ride-hailing and deliveries for the past 11 years, it only became a regulated FinTech recently with the launch of its digital wallet in the UAE. The company has since launched a comprehensive suite of FinTech products, including a peer-to-peer money transfer service and international remittance starting with UAE and Pakistan as the first corridor.
Madiha emphasized that Careem Pay is determined to perfect its services before expanding into other corridors. She said, "We want to make sure that the services we provide are of the highest quality and meet the expectations of our customers."
Driving Innovation and Growth in the Fintech Industry
Careem Pay is playing a pivotal role in driving innovation and growth in the fintech industry. She discussed how the company is working to establish industry-leading verticals and build a fintech ecosystem in the Middle East.
Madiha also shared her vision for Careem Pay, stating that she envisions making Careem Pay the leading digital financial services provider in the region. She mentioned that the company is constantly innovating and looking for new ways to improve its services and meet the evolving needs of its customers.
Conclusion
In conclusion, this episode of Couchonomics with Arjun provided an insightful look into the evolution of Careem Pay, the fintech arm of Careem, and the challenges and opportunities that come with building a fintech ecosystem in the Middle East.
Madiha Sattar, VP of Careem Pay, shared her vision for making Careem Pay the leading digital financial services provider in the region and how the company is working to establish industry-leading verticals. The discussion covered a range of topics, including the transition from a ride-hailing brand to an everything app, geographic expansion plans, the importance of diversity in fintech, and more.
Overall, the episode offered valuable insights for anyone interested in fintech, particularly in the Middle East, and highlighted the importance of innovation, customer service, and building a company culture that values diversity and inclusion.
The growth of fintech in the Middle East presents significant opportunities for startups and established companies alike. As more people in the region become comfortable with digital financial services, the demand for innovative fintech solutions will continue to grow.
Companies like Careem Pay, with their commitment to providing essential financial services as part of an everything app, are well-positioned to take advantage of this growing market. With Madiha Sattar at the helm, Careem Pay is poised to become a leader in the fintech industry and play a key role in driving innovation and growth in the Middle East.
Learn more about open banking and open finance by checking out this exciting episode of Couchonomics with Arjun. Join us as we chat with Madiha Sattar, VP of Careem Pay, about the future of finance. So, if you're interested in staying up to date with the latest trends in fintech and finance, be sure to listen to the latest episode of Couchonomics with Arjun today!