Which is speak up, take initiative, see things through impact, be frugal, and make sure to be collaborative with each other. [23] In December 2016, the company raised US$350 million in a Series D round, based on a US$1 billion valuation for the company. Because if you wow them, then they will wow your customers, right? So the way a manager behaves in Egypt or Pakistan might be completely different. Or the systems that have to run, you know, like a railway thing. Mudassir Sheikha is the co-founder and CEO of Careem, MENA's leading car booking service that is based out of Dubai and operates from Morocco to Pakistan. Like off the record, I can say the number, but I think it was quite a bit, almost twenty exact number, right? : So should pricing be done at the city level with some advisory support from the country? So we started that exercise, but we didnt complete it. So you have to work through other people. Client satisfaction, repeat work from those clients, and there was a belief that if you focused on these things, then they dont have anyone to follow, right? Did you think about that? And then one thing led to another. And then become a lot more involved in the hiring and the onboarding process. The acquisition of the entire company means that these shares will be acquired by Uber as well creating millionaires. Or a formal recruiting process? : If you are constantly looking at these numbers and chasing people when numbers are low, then after a certain point, people start looking at these numbers proactively. Mudassir Sheikha: Its an investment for sure, right? So after CVC, we said lets start-. So its just the real time nature of the business and the realizing that we have to hit high growth rates and reacting faster if somethings not right. And now in the next couple of weeks, were launching buses in Egypt. Thats a very unusual thing. That vision keeps getting communicated to everyone that is at Careem, joins Careem. [4] In 2020 Uber purchased Careem for $3.1 billion USD. How to work with our systems. This page is not available in other languages. What percent of the times is a car available? In a conversation with Shikhar Ghosh, Sheikha reflects on leadership lessons he learned while rapidly scaling. What are the things that surprised you about that transition from when you go to knowing everything thats happening and acting on each of the things that are blowing up, to knowing that Im not going to know a lot thats happening? Lets try to create some management layers that will create some sanity to it. [10], In June 2017, Careem launched operations in Palestine as part of a commitment to create one million jobs in the MENA region by the end of 2018. : So when we get a phone call and say hey, whats going in? So these are experience KPIs that we look at that tell us what retention rates will be for customers on some longer term basis. I get this question all the time from people-. [3], In 2012, he left McKinsey & Company to form Careem with ex-McKinsey colleague, Magnus Olsson from Sweden. Just, you know, a typical weekly calendar sort of thing. I think some of these things are tested locally as well. Today, Careem is the leading technology platform across the greater Middle East and was recently acquired by Uber in the largest industry transaction seen in the region. ", Leadership Coach & Educator, Fortune 500 Executive. Theres questions that you ask and then, you know, based on the responses that you get, you can get a feel for it, right? And we said we are being ambitious and we are trying to build something really, really big. But youre building a structure to do that. Most of them were living in groups in a single room and working the entire seven days to send money back home. Shikhar Ghosh, Marilyn Morgan Westner, Mudassir Sheikha and Matt Fischer. And get some early head start in this business. We created some values and we just left it there. The equation was to strike a balance between increasing the respect and dignity for drivers and providing a good service for customers. And Ill see the growth, but as soon as that promo code is over, the growth will vanish, right? Mudassir shared his journey and ways to boost entrepreneurship in the region. Keep improving and stay humble. And go to the office, you know, there are bunch of meetings depending on the day and depending on the time of the month. You know, if you miss growth in one hour, then its going to be difficult to recover in the rest of the day. The task and the challenge of getting that right was not as I was nave on that front. So theres a high correlation between people, motivation. Every year, literally, there was an expansion of the vision based on what we were seeing in the market and some of the success and the growth that we were having. At that point, we were a bit speechless because we felt that things would get better in two years from when we started the business. Now, that vision has been defined. And the quality experience is the quality engagement part. [26][27], On 26 March 2019, Uber agreed to acquire the company for US$3.1 billion, including US$1.4 billion in cash and US$1.7 billion in convertible notes,[28] making Careem the first unicorn startup company in the Middle East outside of Israel. Spend the first three to four hours just doing the things that Im supposed to do, which a lot of times is thinking through some of these topics that require more deliberate thinking. In your case, its been constant. I would like to do this. Mudassir Sheikha: Yeah, so a lot of the interviews are done, if theres a very local candidate, the results are done by the local person, right, thats going to be the manager for that person. And thats the gap, right? So next time you interview someone that is amazing in what needs to be done but is not a culture fit, youre more comfortable making that call that this person is not the right fit for Careem. Like ambition. How do you transfer that, then? We are a business that whose process and systems are behind where we are as a business. Whats your sense of the trade off? So it was very incrementally, okay, we need to open this market now. So that, you just trained the organization to be on it. Every year, literally, there was an expansion of the vision based on what we were seeing in the market and some of the success and the growth that we were having. Thank you very much. [2] In Saudi Arabia, women make up 80% of the company's customers. So it can be done at the country level. Mudassir Sheikha shares how navigated leadership challenges, including balancing family needs and establishing culture, while rapidly scaling Careem. Careem is the first unicorn in the Middle East and a game-changer service for the region. Thats the default one. We came from a culture that was giving very regular feedback in the consulting days. It takes a lot of doing, you always have to be positive even when youre having a bad day. When we did the OS, we have these seven principles now. It didnt seem impossible to pull off. Mudassir Sheikha: If you are constantly looking at these numbers and chasing people when numbers are low, then after a certain point, people start looking at these numbers proactively. But to sort of get it in that shape probably took a lot of time and a lot of thinking and a lot of iteration, right? You go through that deck, you know, I think in literally half an hour, you get a very good sense of what this organization stands for. What gets done in the country? : Yeah, so a lot of the interviews are done, if theres a very local candidate, the results are done by the local person, right, thats going to be the manager for that person. But there was no sight of things getting better. How do you think about that challenge? How do you balance the tax that you place on yourself and therefore on your family, therefore on other choices that youre making. So these are people that are super capable that we trust. : It had some validity, it had some relevance. Youre not going to get it exactly right every time, but youre going to get If you ask the question every time, then you can start calibrating as well. : You know, we havent tracked it fully yet, right? . Mudassir Sheikha: And the second thing which has happened, and you know, we had a conversation six months ago where I think you said something very interesting. : So thats been a core challenge for the last year almost, for us. So that person can translate and say look, hes ambitious. During its first two years, to compete against Uber, Careem grew at an unprecedented rate of 30% per month. We already captured that segment. But there was no sight of things getting better. So this was something that she, being from Egypt, understood the opportunity, understood that there was a need for it. Even a manager who follows the basic good principles that you have, these behave differently because thats the way organizations are. When [inaudible] was picking up a call and speaking to a customer, I could overhear [inaudible] because he was sitting next to me. Subscribe at just $0.17 per day to get unlimited access. Shikhar Ghosh: Two years ago. His Swedish colleague Magnus Olsson joined his mission. And focusing on people is not just focus on individuals, but focus on the culture-. [11] In January 2018, they became the first ride-hailing service to launch in Baghdad. He started his career with Trilogy Software before joining San Francisco-based mobile experience startup Brience at the height of the dot-com bubble in March 2000. A committee was organized by the Egyptian government to assess the complaints of the protesting taxi drivers and standardize taxi services in Egypt. Entrepreneur and its related marks are registered trademarks of Entrepreneur Media Inc. Mudassir Sheikha is the CEO and co-founder of Careem. I dont know remember what Magnus had. Shikhar Ghosh: So even if you create new businesses, if the operating system is robust enough, then it will morph into that. Now, of course, it could be cause and effect but when weve invested in people and getting people excited, weve actually seen growth happen I those markets. So these values, theyre somewhat universal, right? : You know, why not 10% a month? At which point, there was some resignation that it is what it is. How do you think about that challenge? . And then what was also happening in the early days is we had no customer service. Mudassir Sheikha: And it takes time, it takes thinking. Why can it not be in the Middle East? And so the pressure on the top comes down a little bit. And that has more engineers than us. [3] Careem expanded into the food delivery business with Careem Now in November 2018[4] and launched a digital payment platform, Careem Pay in April 2022. Shikhar Ghosh: Youve been talking about the vision of slowly desegregating the pressure so it all doesnt come to the talk. WATCH LIVE. You go in, you show the boarding pass, youre in. If youre running a business of hundreds of millions of dollars, a mistake is many millions. Transportation Acquired Companies With More Than $100M in Revenue, Transportation Acquired Companies With More Than $50M in Revenue, Asia Acquired Companies With More Than 50 Employees, Logistics Acquired Companies With More Than 100 Employees, Customer Service Companies With More Than 50 Employees, Polytechnic University of Turin Alumni Founded Companies, United Arab Emirates Acquired Companies With More Than $1M in Revenue, Quinnipiac University Alumni Founded Companies, Number of portfolio companies associated to the Person, Total number of current Advisors and Board roles the person has, The organization associated to the person's primary job, Where the person is located (e.g. Every 15 minutes we know where a city is vis a vis last week the same time. Uber Technologies has agreed to buy Careem in a $3.1 billion (Dh11.39bn) deal that is the largest technology sector transaction in the Middle East so far, eclipsing Amazon's $580 million acquisition of Souq.com in 2017.. Once the transaction is completed early next year, Careem will become a . And the more I get into it, the more I realize that if you just get this right, then this thing will start running like a machine. The next year it was why just the GCC? I profile people and startups contributing to the Pakistani technology entrepreneurial ecosystem. Language links are at the top of the page across from the title. You could drive growth differently and probably the healthier way if you target lesser, lower growth rates because then you can focus on the right things, which might take a little bit longer to put in place, but theyll bring healthy growth. CNBC Transcript: Careem CEO Mudassir Sheikha Speaks with Hadley Gamble from the CNBC Evolve Global Summit. Mudassir Sheikha: So thats been a core challenge for the last year almost, for us. [25] In October 2018, the company secured US$200 million funding from its existing investors. Cairo has grown seven percent from last week. Spend the first three to four hours just doing the things that Im supposed to do, which a lot of times is thinking through some of these topics that require more deliberate thinking. The things that we commit to our wives that we will do on a weekly, monthly basis. And what gets done in Dubai, which is our head office. Generous, the meaning of Careem, defined the ethos of this ride-sharing startup. Mudassir Sheikha: And on the captain side, similar KPIs. We just thought get the right people in place and they will figure out what to do. Shikhar Ghosh: So in 2017, what was your revenue? So how will we win against someone like that? Then, do I get rid of this person? : Someone, one of our colleagues that worked with us on the OS, he asked me, do you know where Mackenzies revenue was? Namedone of the "Best Entrepreneurs in the US," by Businessweek, Ghosh has led some most innovative tech-based companies in the US and advised hundreds of entrepreneurs. I need to get responses in this time, Im going to pay this much money. [1] The company, which was valued at over US$2 billion in 2018,[2] became a wholly-owned subsidiary of Uber after being acquired for $3.1 billion in January 2020. So, you know, as the CEO, what have you learned, what surprised you about being CEO of a really fast-growing company? Were we giving people feedback on the values? They all knew it was going to be tough. Shikhar Ghosh: So what does that mean? Shikhar Ghosh: But there are common systems, right? And in the beginning, you know, I was spending a lot of time in these different markets, just making sure that I educate the people that are starting on how to run this business. It would have made us, you know, correct a lot of the hiring decisions. You can say, okay, wow for someone in finance means your customers are not just the external customers, which is you have a limit of external interaction as well, but a lot of your customers are internal, right? Mudassir Sheikha: So this product market fit is a continuous thing. We just had bigger hands and we were still able to manage. : The biggest learning and the biggest surprise has been around people leadership, right? Legality of ridesharing companies by jurisdiction, "Careem eyes potential expansion to 250 cities in MENA", "Mideast ride-hailing app Careem raises $200 million to expand, expects more funds", "Uber buys rival Careem in $3.1 billion deal to dominate ride-hailing in Middle East", "Careem NOW: Engineering a robust and scalable food delivery application", "Careem Pay launches digital wallet for money transfers, withdrawals in UAE", "Tech in Asia - Connecting Asia's startup ecosystem", "Meet Careem: The Uber of The Middle East", "Uber-clone vows safe, affordable ride. Mudassir Sheikha: Yes, of course. Mudassir Sheikha: I think that the thing that was most surprising for me was around people and culture. You get a boarding pass. Those things did not happen as well as they should have. Theres always something thats going right and wrong with different markets. Mudassir Sheikha is the CEO and co-founder of ride-hailing app Careem, one of the hottest startups on the Asian continent. Its Karachi should do something, Lahore should do something and the people that are running those cities need to be empowered to do those things. : You know, this mountain, then the next mountain, the next mountain at the same pace, almost because your growth rate has continued at very high rates. They all knew it was going to be tough. Can we help you with anything? So they can provide a service to a city. : So they were suffering from not even getting proper sleep in the early days. And if you miss one day of growth, then its going to be difficult to grow at 30, 40% monthly, which is sort of the targets that we had initially. We work on a daily cycle, so we improve 30 times as much, you know, within that same period of time. Mudassir Sheikha: So that part, in hindsight was we underestimated that challenge and we didnt invest enough in it. Some of the Careem executives other than Mudassir Sheikha, Magnus Olsson, and Abdulla Elyas whose net worth will skyrocket after this transaction are likely to include: The employees who will create wealth are not only the executives and operational team who have been associated with the company since its early days but also those who left after serving for a time period and earned company stock. But then it becomes products and product market and so on. Careem has announced its $3.1 billion acquisition by Uber, the largest technology sector acquisition in the Middle East. But the question is why minutes and not hours or days, right? We didnt really define what these values meant, what kind of behaviors we expected, took enough time at the beginning when people joined to onboard them properly on these values. How do you transfer that knowledge? Today, the company is the largest ride-hailing company in the Middle East and operates in more than 100 cities across 13 countries. Define the values and the culture that you want to create. : So this particular thing is driven a lot by the industry that youre in? Its Karachi should do something, Lahore should do something and the people that are running those cities need to be empowered to do those things. Mudassir Sheikha: When we raised our CVC, we actually promised ourselves that we will get away from that mindset, that were not going to keep patching things because that whole debt was starting to catch up to us. And when that service is provided, it needs to have very clear SLAs. So theres a high correlation between people, motivation. And family does suffer. Shikhar Ghosh: So, you know, in your first values, if I remember correctly, one of them was we will I think you phrased it as we will always create wow of some kind, right? And if he do them well, then a lot of the metrics start improving and we started seeing healthier growth happen as a result versus just trying to see, hey, I need 10% growth tomorrow. But for you, it feels like its more that this is what you have to do to be competitive, but from a pure sort of market share and all of that perspective. : Youve been talking about the vision of slowly desegregating the pressure so it all doesnt come to the talk. : The people processes, the structure. Valley building technology startups, where he was most recently the co-founder of DeviceAnywhere, which was eventually acquired by Keynote Systems. How do you balance these two things? The task at hand was to find a meaningful purpose for the business they wanted to build. Mudassir Sheikha: Yeah. Shikhar Ghosh: But for example, if you have something that says that people who work for us should have opportunity. Mudassir Sheikha: You know, we havent tracked it fully yet, right? If its a necessary part of it, but its the customer service, its the on time, you know, its all of those things. : So whats an example of an input KPI that would affect growth? So analytics just as an example. "From seeing a startup go belly up, Careem CEO Mudassir Sheikha has come a long way", "CNBC Transcript: Careem CEO Mudassir Sheikha Speaks with Hadley Gamble from the CNBC Evolve Global Summit", "Careem CEO says the Middle East is 'not very far' from seeing more billion-dollar start-ups", "Uber buys rival Careem in $3.1 billion deal to dominate ride-hailing in Middle East", "Dubai's Careem rides high after $3bn Uber buyout", "Meet The Unicorn That's Beating Uber In The Middle East", "Careem's Mudassir Sheikha on Co-Founders, Establishing Culture & Balancing Family at a Rapidly Scaling Startup", "Co-Founder Careem, Mudassir Sheikha Donates USD 2 Million to LUMS Syed Babar Ali School of Science and Engineering | Welcome to LUMS", https://en.wikipedia.org/w/index.php?title=Mudassir_Sheikha&oldid=1150982003, This page was last edited on 21 April 2023, at 05:42. And make that real. Mudassir Sheikha: Yeah, because one thing you have to realize is there are some net worth effects in this business. He received his bachelor's degree in Computer Science from Lahore University of Management Sciences and later went on to obtain a Master of Science degree in Computer Science from Stanford University in 2007. Mudassir Sheikha: One is like, look, youre not at home much, so youre leaving at six a.m. sometimes, many times. Shikhar Ghosh: And the cause-effect relationship is never completely clear. [16], In May 2019, Careem announced the acquisition of UAE-based bike-sharing startup Cycle which will re-brand as Careem Bike. [1][2], Mudassir grew up in Karachi, Pakistan. : So one opportunity for example, one of our early, early colleagues, she realized that bus, Careem bus was an opportunity. And when you make the hard choice, you know, I can get more revenue by doing this, you know, heres this person who is our best salesperson, but hes a jerk to all the employees. In November 2015, Careem announced a Series C round investment of US$60 million led by The Abraaj Group. Basically these are starting routes for now. Ideally, youd designate some people that you believe are super-aligned with the values and these are the people that do this for It could be a few of them that do it for everyone so that theres some consistency thats applied to that process. How do you transfer that, then? So they say theres seasonality and theres this and that, so I cant do monthly, even. Shes the entrepreneur now, right? The living conditions of these drivers were appalling. And we feel grateful that weve been able to attract these people to the journey. What is the quality of customers that were giving him which is measured by the ratings that he gives to the customers.
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