ASSESSMENT

PROBLEM
STATEMENT
Situational Analysis

• Make renting a Vehicle Easier

Cost
• Affordable Rent A Car

• Simplifying & Standardizing Rent A

Car
Customer’s Criteria
• Car’s depreciate their values with
time & Cars on average is
underutilized 65% of the time
Market Segment & Trend
4.5

4
GROWTH
3.5

4M • Turo’s growth has been has been

3
exponential ever since it started
back in 2012
2.5
Users in Millions
• Initially launched in San Francisco &
2 Boston with 200 Cars on its
2M platform
1.5
• Turo was named among “The 14
hottest on-demand startups” back
1
in 2015
0.8M
0.5

0.01M 0.08M 0.2M

0
2012 2013 2014 2015 2016 2017
SITUATIONAL
ANALYSIS
 Application Development
and Technical Support
COST
Operational Cost
• Rent
• Salaries
• Insurance, etc.

Advertising Cost
PRIMARY DECISION FACTORS

7%

10%

49%
CUSTOMER’S
CRITERIA

34%

Price Service Convenience Product

 CUSTOMER REASONS TO RENT

6%

15%

45%
CUSTOMER’S
CRITERIA

34%

Service/Insurance Replacement Leisure Business Need For Second Vehicle

MARKET SEGMENTATION IS CATEGORIZED INTO

➢ Vehicle Renters
➢ Leisure
MARKET
➢ Business
SEGMENTATION
➢ Vehicle Owners
➢ Super Host i.e. Local Rent A Car Businesses
➢ Regular Car Owner
MARKET TRENDS

NORTH AMERICAN TRENDS

MARKET TRENDS

EUROPEAN TRENDS
MARKET TRENDS

ASIAN TRENDS
MARKET TRENDS

SOUTH AMERICAN TRENDS

MARKET TRENDS

GLOBAL TRENDS
PAKISTAN: RIDE SHARING SURVEY

27

MARKET TRENDS

Total of 7,391 Survey responds

73
accumulated through an online
questionnaire

Ride Sharing Users Non-Users

RESPONDENT’S GENDER

17%

MARKET TRENDS

PAKISTAN : RIDE SHARING SURVEY

83%

MALE FEMALE
RESPONDENT’S AGE GROUP

MARKET TRENDS

PAKISTAN : RIDE SHARING SURVEY

 RESPONDENT’S INCOME BRACKET

MARKET TRENDS

PAKISTAN : RIDE SHARING SURVEY

18K-25K No Income- Student 41K-60K 26K-40K

61K-80K <18k 120K+ 81K-120K

 RESPONDENT’S LOCATION

3% 1%

50%
MARKET TRENDS
46%

PAKISTAN : RIDE SHARING SURVEY

KARACHI LAHORE ISB/RWP OTHERS

 USERS OWNERSHIP OF VEHICLE

26% 29%
MARKET TRENDS

PAKISTAN : RIDE SHARING SURVEY

45%

CAR MOTORCYCLE I DON’T HAVE A VEHICLE

USERS OWNERSHIP OF VEHICLE
BY CITY

MARKET TRENDS

PAKISTAN : RIDE SHARING SURVEY

SMART PHONE USERS

6%

MARKET TRENDS

PAKISTAN : RIDE SHARING SURVEY

94%

YES NO
 RESPONDENT’S MOBILE SERVICE PROVIDER

13.96%

14.27% 40%
MARKET TRENDS

PAKISTAN : RIDE SHARING SURVEY

32%

MOBILINK/JAZZ/WARID UFONE TELENOR ZONG

 RESPONDENT’S MOBILE INTERNET SERVICE

4%
16.51%

MARKET TRENDS
55%

PAKISTAN : RIDE SHARING SURVEY

35.61%

2G/EDGE 3G 4G/LTE I DON’T HAVE A PLAN

 MARKET SHARE
BASED ON GENERAL VOTING
90.00%

80.00%

70.00%

60.00%

50.00%
MARKET TRENDS
40.00% 79.65%
76.04%

30.00%
PAKISTAN : RIDE SHARING SURVEY
20.00%

10.00%

6.45% 5.82% 3.41%

0.00%
Careem Uber MetroCab GoRickShaw Others

*Respondents were allowed to chose multiple options

FREQUENCY OF USAGE
PER MONTH

26%
MARKET TRENDS

PAKISTAN : RIDE SHARING SURVEY

74%

[1-3] [4+]
 POPULARITY OF SERVICE
3%
1% 2%
2%

47%

MARKET TRENDS

PAKISTAN : RIDE SHARING SURVEY

49%

Careem Uber Go RickShaw! A-Taxi Metro Cab Others

 SWOT Analysis

MARKETING Revenue Model

STRATEGY

Market Segment & Trend

 STRENGTH WEAKNESS
• Peer-to-Peer Car Sharing • Rental Cars are outsourced
Business Model hence dependent on lenders

• First Movers Advantage • Financial exposure on liability

coverage for rental cars
• No Cost involved in maintaining a
fleet of Cars
• Lenders behavior impacts
• No Additional Cost Incurred Markets image
SWOT
OPPORTUNITY THREAT
ANALYSIS
• Increasing Car Sharing Trend • Increasing competition may
Globally lead to price based One-
upmanship
• Rising trend in travelling
industry due to increased • Change in governmental
connectivity globally regulations

• Technological advancements • Taxi-hailing platform & other

enabling ease of Business Rental Car Companies eating
into revenues
 REVENUE MODEL

TURO capitalizes on the sharing economy by populating its Marketplace with vehicles offered by ordinary car owners. The
catch for these car owners is that they can generate revenue from an asset that they're not usually using. Price is calculated
based on the various criteria’s,
• TRIP PRICE: Amount Based on the Car’s Rate multiplied by the duration
• TRIP FEE: 10% of the Trip Price covers the costs of 24/7 customer support, platform security and upgrades, and vendor
fees
• PROTECTION FEE: Cost of Protection Plan you choose vary by country
• YOUNG DRIVER FEE: Drivers aging in range 18-24 are charged with an additional fee that may cost up to 20% of Trip
Price or $15 per day
• DELIVERY FEE: Fee charged by the host to pickup and drop off a vehicle
• EXTRAS: Cost to buy optional convenience or physical item that host has to offer. Hosts sets their own prices
• SECURITY DEPOSITS: This is the cost to book a trip in a high-value vehicle or for some US guests to book any trip on
TURO
• TAXES: Cost of Governmental Taxes on overall Trip Cost, except Deposits
• POST TRIP COST: Reimbursement Cost to cover some post-trip costs. Host may request for reimbursement for fuel,
cleaning, tickets and tolls, taxes, and additional Mileage
 REVENUE MODEL

WHERE DOES TURO GENERATES ITS REVENUE FROM?

TURO runs on a sharing economy principle, So while the car owners are sharing
their vehicle with travelers and making money out of it, they’re also sharing their
revenue with TURO.
TURO on average costs a 25% cut from the Trip Price. Average Monthly Earning for a
TURO host is about $625 per Car, According to Christin Di Scipio, Communications
Coordinator for Turo
Using the above mentioned figure, we can estimate that TURO makes around $208
per car per month from just the Trip Price
In addtion, TURO generates 10% as ‘Trip Fee’ on ‘Trip Price’ which amounts to around
$83 per car per month
 BRAND MARKETING
▪ TURO is widely used by tourist, and capitalizes in those seasons,
given the sheer number of competitors TURO uses Electronic &
Digital Media to market itself to attain the maximum mind-share
• Since the platform is based on sharing economy principle, the MARKETING
Hosts/Lenders are the unofficial ambassadors by sharing their
market spaces/cars up for rent.
OBJECTIVE
• Action Plan for TURO is based on to increment the LTV (Life-Time
Value), although the LTV Model is very much different than of on- • TURO with it’s First Movers
demand market places such as Instacart or Uber Advantage went for Brand
• TURO considers it important to acquire right and long term Recognition and positioning by
customers than to get a lot mediocre users early on. capturing Market Shares
• It’s action plan includes
• TAG LINE
• Targeting All-Star Host with value “Way better than a Rental Car”
• Promotions tailored to segments
• Location Discounts
• Wide range of Cars including Luxury
• Verification of Guests and Hosts (Review Marketing)
 TARGETING ALL-STAR
MARKETING
HOST OBJECTIVE

• TURO with it’s First Movers

All-Star Hosts are valuable to TURO. These Advantage went for Brand
Hosts attain this status by gaining experience, Recognition and positioning by
capturing Market Shares
amazing ratings, and amazing over-all
performance on platform which includes • TAG LINE
commitment rate, acceptance rate, and “Way better than a Rental Car”

response rate.
 PROMOTION TAILORED
TO SEGMENTS
MARKETING
TURO offers Promotions to different segments such as, OBJECTIVE
referral promotions or seasonal promotions or All-Star
Host Promotion, alluring the people to become users of the
platform. • TURO with it’s First Movers
Advantage went for Brand
• Referral Promotions is a lot better as statistics show that Recognition and positioning by
conversion rate per CAC ( Customer Acquisition Cost ) is a capturing Market Shares
lot better in terms of CRO (Conversion Rate Optimization) in
contrast to many other marketing strategies.
• TAG LINE
• Seasonal Promotion is offered in high Tourism Seasons “Way better than a Rental Car”
like Summers when people are actively looking for such
services, Seasonal Promotional compliments the seasonal
advertisements to attract more user base.
• All-Star Hosts Promotion is again an awesome way by
TURO to assure the best Renter experience in order to
acquire valuable users that compliments it LTV.
 LOCATION DISCOUNTS
MARKETING
OBJECTIVE

Location Discounts is a lot similar to the
seasonal promotion although it’s based on the
location based traffic. These discounts are
based on the high market demand for such
services
• TURO with it’s First Movers
Advantage went for Brand
Recognition and positioning by
capturing Market Shares
• TAG LINE
“Way better than a Rental Car”
 WIDE RANGE OF CARS
MARKETING
OBJECTIVE
TURO is an open car sharing market place
hence, it has no standardizing over the car
models allowed to be rented, this allows • TURO with it’s First Movers
Advantage went for Brand
lenders with ordinary or luxurious cars to rent Recognition and positioning by
their vehicles and renters to rent their cars capturing Market Shares
according to their budget or need. • TAG LINE
“Way better than a Rental Car”
The platform also provide lucrative options to
rent out Luxurious Cars with same ease as for
other cars. The platform also offers a great-
way to car enthusiasts to rent their dream car in
cheaper than traditional rental companies.
 VERIFICATION OF
GUESTS AND HOSTS MARKETING
OBJECTIVE
As TURO is an online Car Sharing Market Place
the user reviews holds a lot impact, hence in- • TURO with it’s First Movers
Advantage went for Brand
order to succeed through Review Marketing. Recognition and positioning by
capturing Market Shares

• TAG LINE
TURO vets all its users to attain best user “Way better than a Rental Car”
reviews in future which would eventually lead
to building trust, and that was very essential for
the Online Market Place to grow and succeed.
 SWOT Analysis

MARKET
ANALYSIS
Marketing Trend

FOR SIMILAR SERVICE TO BE

LAUNCHED IN PAKISTAN

Competitive Edge
 STRENGTH
• P2P Car Sharing Business Model •
• First Movers Advantage
• No Cost involved in maintaining
fleet of Cars
• No Additional Cost Incurred
• Added Security and Self-
Reliance
OPPORTUNITY
• Increasing Car Sharing Trend
Globally
• Rise of Tourism Industry in
Pakistan
• Technological advancements
enabling ease of Business
• Higher need of Second Income
Channel in Pakistani Community
WEAKNESS
Cars are dependent on lenders
• Financial exposure on liability
coverage for rental cars
• Lenders behavior impacts
Markets image
• People are very personal about
their Vehicles
• Weak Law Enforcements
• Internet Coverage Problems SWOT
THREAT ANALYSIS
• Public Insecurity & lack of trust
• High Traffic may lead to FOR SIMILAR SERVICE IN PAKISTAN
accidents & Increase Insurance
claims
• New Governmental Regulations
• High competition from Taxi-
Hailing Services (Uber/Careem)
• Burglars & Smuggling is also a
threat in Pakistan
 MAJOR COMPETITORS
CAREEM
Careem launched it’s service in Pakistan, and is
considered more reliable due to different
reasons for different education classes.

MARKETING
UBER TRENDS
Uber is another car hailing service that’s
operational in Pakistan, and is Careem’s strong
competitor offering Cheaper than Careem
rates.
 CAREEM/UBER

Careem/Uber Business strategy revolves

around pleasing their customer and making
them use their service, feel the difference in
their daily commute, and stick with them!
MARKETING
Their marketing strategy is to facilitate the TRENDS
“Strangers & Butterflies”(i.e. People who are
not loyal and also bring the least amount of
revenue, and People who are not loyal but
brings good amount of revenue respectively)
and make them loyal i.e. Regular Customers.
 CAREEM

Ever since Careem has entered this market, it

has always tried to indulge in the local
problems and solutions, making more revenue
out for themselves, Such as coming up with the
idea of Rickshaws and Bike to tag on with their MARKETING
platform which are an enormous quantity in this TRENDS
City, they are most likely to launch a new
service of Carpooling i.e. being tested out
currently.
Careem’s UI is attractive due to it’s beautiful
green color which psychologically give out a
feel of safety, freshness and harmony.
 BRAND MARKETING
▪ Careem is widely used by people from all walks of life, given
the sheer number of competitors Careem uses Electronic &
Digital Media to market itself to attain the maximum new
influx of users
• Careem is based on sharing economy principle, hence the
car owners/drivers share their revenue with Careem at
each ride MARKETING
• Action Plan for CAREEM is based on building Customer TRENDS
Relationship to increase the CLTV (Customer Life-Time
Value)
• It’s action plan includes
CAREEM PAK
• Careem Gold
• Careem Packages
• User Rating
• Wide range of Services
• Verification & training of Drivers
• Promotions tailored to segment
 CAREEM GOLD

Careem Gold is a Customer Status awarded

to regular customers.
When ever someone takes a ride he/she is
rewarded with 50% ‘Points’ of the amount MARKETING
that is spent, these ‘Points’ stacked up can TRENDS
be used to buy discounts/credits or donate
to someone in need
CAREEM PAK
Customer achieves Gold Status by taking 15
rides a month getting 50% more ‘Points’,
getting all the exclusive offers and priority
support.
 CAREEM PACKAGES

Careem encourages people to use their MARKETING

services by offering them Packages for TRENDS
rides and kilometers at a discounted rate.
This lucrative offer saves a lot of money for
CAREEM PAK
their regular customers and make the
transaction at ease
 USER RATING

Both the Customer and the Driver give

rating to each other, this rating parameter
effect the users in the long run.
For Customers, low rating means low MARKETING
priority driver allocation and Customer TRENDS
Support.
For Drivers, low rating means ride
allocation becomes less frequent CAREEM PAK

This rating ensures smooth User experience

which helps Careem ensure their goal to
maximize CLTV
 WIDE RANGE OF
SERVICES

Careem offers wide range of Services

indulging every business sector to use their
services, from delivery personnel to MARKETING
Business People, Careem offers TRENDS
comfortable and easy transportation
solutions for everyone.
CAREEM PAK
 VERIFICATION &
TRAINING OF DRIVERS

Careem is very critical in who serves the

End-Customers hence, it inspects and
trains the driver to deal with different type of MARKETING
people and situations putting itself one step
ahead from its competitors.
TRENDS

Proper training of drivers and Cars CAREEM PAK

inspection is very necessary for the Good
Reviews of the platform which is very
important for any online platform to build
public’s trust and increase the new influx
and retainment of Customers
 PROMOTION TAILORED
TO SEGMENTS

Careem offers promotional offers

frequently to maximize the CLTV and influx
of new Customers MARKETING
Referral Promotion offers credit to both TRENDS
Sender and Receiver at Customer
Acquisition
Careem offers Special Discounts to retain CAREEM PAK
customers & specially to those with a
downward usage curve
Careem Partners with events, conferences
or Businesses and offers them discounts
tailored for them
 UBER

Uber, an American Multinational

Transportation Company and presence in
Pakistan is constraint with minimum
services but services that are widely used
MARKETING
and required capturing ‘Valued’ Market. TRENDS

Uber is a strong competitor in the local

market offering lower rates than it’s
competitors and has a simple and efficient
UI
 BRAND MARKETING
▪ Uber is widely used by people from all walks of life, given the
sheer number of competitors Uber uses Electronic & Digital
Media to market itself to attain the maximum new influx of
users
• Uber is based on sharing economy principle, hence the car
owners/drivers share their revenue with Careem at each MARKETING
ride
TRENDS
• Action Plan for Uber is based on building Customer
Relationship to increase the CLTV (Customer Life-Time
Value)
• It’s action plan includes UBER PAKISTAN

• User Rating
• Range of Services
• Partnerships
• Verification of Drivers
• Promotions tailored to segment
 USER RATING

Both the Customer and the Driver give

rating to each other, this rating parameter
effect the users in the long run.
For Customers, low rating means low MARKETING
priority driver allocation and Customer TRENDS
Support.
For Drivers, low rating means ride
allocation becomes less frequent UBER PAKISTAN

This rating ensures smooth User experience

which helps Careem ensure their goal to
maximize CLTV
 RANGE OF SERVICES

Uber offers Range of Services widely used & MARKETING

required to accommodate the market needs. TRENDS
Uber is soon launching it’s famous Uber Eats
delivery service in Pakistan
UBER PAKISTAN
 PARTNERSHIP

Uber Partners with different brands, MARKETING

services and corporations like ICC TRENDS
One such example is Ubers partnership with
Peekaboo Guru (a location-bases Business UBER PAKISTAN
Directory) in Pakistan
 VERIFICATION OF
DRIVERS

Uber keeps a check on who serves the End-

Customers as, it inspects and verifies the MARKETING
driver and ensure only the right set of TRENDS
people are on-board

UBER PAKISTAN
Good Drivers are proportional to good rating
and increase of trust and reliability which is
very essential for an online platform to
succeed
 PROMOTION TAILORED
TO SEGMENTS

Uber offers promotional offers frequently to

maximize the CLTV and influx of new
Customers MARKETING
Referral Promotion offers free ride to both TRENDS
Sender and Receiver at Customer
Acquisition
UBER PAKISTAN
Uber offers Good Discounts very frequently
to retain customers & specially to those with
a downward usage curve
 COMPETITIVE EDGE

• First Movers Advantage

• Giving out experience of Personal Car
• Ease at “Renting a Car” by standardizing,
allowing Person to Person Car Sharing.
COMPETITIVE
• Personal vehicle for long routes (Where other
competitors such as Rent A Car or Ride Hailing EDGE
Services restricts or are unavailable
• Added security and self reliance
COMPETITIVE EDGE OF TURO
• Less work, and Good Pay through vehicle LIKE SERVICE
assets
• Business by depreciable asset
• Saving cost of Vehicle ownership and
Maintenance
• Saving Insurance Costs
• Chose Car of your Choice to travel with
THANK YOU