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To say that ridesharing and taxi start-ups are doing well in Asia would be a massive understatement. GrabTaxi, the undisputed leader in Southeast Asia, has achieved unicorn status despite only being in operation for a little over three years. With over 3.8 million mobile app users and 75,000 taxis on the streets, the start-up has well and truly arrived. In China, local start-up Didi Kuaidi is estimated to churn out approximately 3 million rides every single day. There’s a similar battle in India, where Uber, Ola, and TaxiForSure are locked in a dead heat against each other.
Venture capital firms haven’t been afraid in backing these on-demand transport start-ups to the hilt either. Uber is valued at $50 billion, despite rumours of bleeding losses and negative cash flow. GrabTaxi secured $250 million in series D funding late last year to continue its aggressive expansion plans. And, in India, Uber seems to be determined to improve its image and swat away competition by announcing plans to invest $1 billion in the country.
All this talk of on-demand transport in Asia usually centres on markets like China, India, Indonesia, or Singapore.
Pakistan, however, is not on the map.
That’s despite Pakistan being a large market, with a population touching on 200 million, approximately 35 million of whom reside in the urban centres of Karachi, Lahore and Rawalpindi/Islamabad. GDP per capita in the fiscal year 2014-15 was estimated to be $1,513, not too far behind India’s $1,630. While credit card usage remains very low, that’s not too different from other countries in Asia, and start-ups have managed to work their way around by accepting cash payments.
There’s considerable room for improvement in Pakistan’s high-speed internet infrastructure, but there’s enough growth and users to suggest tech start-ups can be disruptive.
This is an excerpt from Tech in Asia. You can read the full article here.
