Tag Archives: Careem

Careem and Uber – Lessons on how to do Acquisition Communications

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Uber’s acquisition of Careem was a masterclass in how to do M&A comms. Careem’s message (and who delivered that message) didn’t help to assuage unhappy customers

We’re a couple of weeks in, and the whole swell of media attention has gradually faded out. The mammoth US$3.1 billion deal by Uber to purchase Careem made headlines globally – it was the largest in the Middle East for a tech startup, and it focused the world’s media on a regional success story. The deal also comes before an IPO that will catapult Uber into the big leagues of the multi-billion dollar tech firms who have gone public. It’s unsurprising that so much attention was paid to the deal between the two dominant ride-hailing apps in the Middle East.

For those of us in the region, what’s also unsurprising is the feeling that many have for both brands. Uber and Careem are Marmite brands, with Middle Eastern consumers either loving or hating them. Some will swear by Careem, and refuse to take an Uber. Given the strength of brand loyalty, it was especially important that the two companies, communications functions and executive teams get the messaging right.

Lessons from Uber – Speed Matters, Keep It Simple and Engage Everyone

I’ve lost count of the number of times that a deal between Uber and Careem has been talked about. I’ve even joked with journalists who seem to get constantly misinformed by the comms teams at the firms. There were leaks, but many of us took the latest piece about any deal with a pinch of salt. When news of the deal was broken on the 24th March by Bloomberg, it seemed different. There were specifics in terms of numbers, on how the Careem brand would disappear into the Uber operation, and on how all shareholders needed to be informed.

Two days later, the deal was confirmed. Uber announced the deal. The format was strange for many of us here, where social media dominates. Instead of a tweet, Uber sent out an email. The copy was short but succinct, with the option of clicking through to Uber’s website. The emailer can be seen in full below.

The email’s message was repeated throughout social media. Uber’s CEO
Dara Khosrowshahi has spent ample time here in Dubai, both giving media interviews to regional press as well as the global newswires, as well as meeting with government bodies to reinforce media interviews to reinforce the message, and government engagement as part of an engagement tour.

On a side note, Uber’s CEO is a dream executive for communicators. He’s composed on camera, he sticks to the message, and he leans in, showing respect for those he’s engaging with. It’s a stark contrast to how things used to be at Uber.

Lessons for Careem – The Messenger Matters

While Uber was straight out of the blocks with a coordinated message, Careem amplified that message through its own social media channels. However, the response was mainly negative, with many users fearing that Careem would become Uber. The Careem comms team understood this, and their messaging was focused on Careem remaining independent post merger.

While this approach makes sense, what they failed to do was personalize the message. They should have used their CEO Mudassir Sheikha to record a video message about the acquisition, focusing on why it made sense for Careem and how the company would be staying independent (they could have also turned to their Saudi co-founder Abdullah Elyas to record the same message in Arabic).

Personal messaging matters to the public – they need to see and hear a person they know, rather than a brand. Given the importance to Careem customers of independence from Uber, I ‘m not surprised that an email from Careem’s CEO to employees ‘was leaked’ to the media last week, which re-emphasized that the company will operate as a stand-alone entity (nothing leaks, unless you’re Julian Assange or the White House). The fact that Careem’s comms missed the mark on the independence message on the first day of the deal means that they’re going to have to repeat this message. The lesson here is get the message right the first time around.

What’s also fascinating is to see how Careem’s own users shared messaging the company put out in 2016, focusing directly on how it was better than Uber. The advertising wasn’t so subtle, as you can see from the video below which is still up on Careem’s Youtube site.

Consumers remember what a brand does, especially when it involves direct attacks on competitors. That’s why such activities are pretty rare. Now that Careem is part of Uber, I’m a little surprised these ads are still up on Careem’s social media. Maybe it’s time the team remember that they shouldn’t only look ahead in their messaging, but they should also look behind to what was done previously to see if it doesn’t impact their current messaging.

That’s it from me. If you have any insights you’d like to share, please do get in touch!

Pokemon Go and the Middle East – Advertiser, Brand and Consumer Reactions to the Global Craze

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I wanted to write on something fairly light and fun today in light of recent events in the Middle East and in Europe. So, today I wanted to shine a light on Pokemon Go, the augmented reality mobile app that has become a global sensation (and if you’re asking what is Pokemon Go, where have you been for the past two weeks?). While Pokemon Go hasn’t been introduced into the Middle East officially, people are already playing the game here. And advertisers and brands are also reacting to and using the sensation to market their products.

Probably first out of the blocks were, unsurprisingly to me, the Saudis. Two of the Kingdom’s telcos put out adverts promoting the craze, which isn’t surprising considering that you need a mobile and a data connection to play the game.

Saudi telco Zain became the first household brand to use Pokemon Go when it ran this advert across its social media channels early this week.

Saudi telco Zain became the first household brand to use Pokemon Go when it ran this advert across its social media channels early this week.

Saudi Telecom ran this artwork the same day as Zain's ad. The ad says, "with our network we guarantee you'll be able to catch'em all, but we can't guarantee where!"

Saudi Telecom ran this artwork the same day as Zain’s ad. The ad says, “with our network we guarantee you’ll be able to catch’em all, but we can’t guarantee where!”

Other brands have also looked to leverage off the lovable Japanese characters. Cab booking service Careem ran out an ad, as did Jordan Tourism. The game uses geotargeting to get people walking around a physical environment such as a city, and brand whose services include travel and tourism (or any location-based product) are fast realizing the potential of getting players to visit their premises (or even country) to hunt the digital creatures.

The UAE-headquartered cab hailing service Careem has leveraged Pokemon Go to promote its service and give gamers a discount

The UAE-headquartered cab hailing service Careem has leveraged Pokemon Go to promote its service and give gamers a discount

Even Jordan's Ministry of Tourism has jumped on the Pokemon Go craze, to get visitors to go and take a look at Amman's Citadel

Even Jordan’s Ministry of Tourism has jumped on the Pokemon Go craze, to get visitors to go and take a look at Amman’s Citadel

Users have also been having fun and sharing their own experiences online. Some have been sharing their experiences, including one apparently from the front lines in Iraq and others in more mundane locations, including finding a Pokemon on top of a plate of Kunafe.

It's enough to put you off your dessert! A Pokemon on top of a plate of Kunafe (image thanks to Samer Batter).

It’s enough to put you off your dessert! A Pokemon on top of a plate of Kunafe (image thanks to Samer Batter).

This image is apparently from the front lines in Iraq, which probably isn't the safest place to hunt Pokemon

This image is apparently from the front lines in Iraq, which probably isn’t the safest place to hunt Pokemon

The craze and people’s reaction to it in the region has been picked up by local media. Reports have circulated that people have ventured into all sorts of places as part of the game. Two cartoons below best sum up that sentiment.

With his phone in his hand and an image of a Pokemon monster on the screen, the caption reads, "finally we see you at the Mosque." (image thanks to Yaser Al Amoudi)

With his phone in his hand and an image of a Pokemon monster on the screen, the caption reads, “finally we see you at the Mosque.” (image thanks to Yaser Al Amoudi)

Saudi cartoonist Abdullah Jaber came up with this image of how game players are so engrossed in the game that they don't notice their surroundings

Saudi cartoonist Abdullah Jaber came up with this image of how game players are so engrossed in the game that they don’t notice their surroundings

The craze hasn’t been without controversy. According to Gulf News, Al Azhar, Egypt’s top Islamic institution, has condemned the craze about Pokemon Go as “harmful mania”. “If such a game can deceive youngsters, I do not know where the minds of adults have gone. They can be hit by a car while being busy searching for Pokemon,” said Al-Azhar’s Deputy Abbas Shuman, according to Gulf News. Al Arabiya reported that Egyptian cabinet spokesman Hossam al-Qawish said that an investigation into the game’s dangers was taking place. The spokesman added that the government was also considering new regulations to be imposed on online games to limit possible threats to national security.

In addition, Gulf News reported that the UAE’s Telecommunications Regulatory Authority (TRA) has warned that criminals could exploit the popular Pokemon Go mobile game. Kuwaiti authorities have also warned against those who take photos of sensitive locations in the country. Brands promoting Pokemon have also been targeted, with the likes of Dominos Pizza and others called into question by those who consider Pokemon to be a work of the devil (if you don’t believe me, see below).

Dominos Pizza's efforts to use Pokemon as part of marketing were called into question by one user, who claimed Pokemon were tools of the devil against Islam. The user told Dominos to change its marketing or risk angering the public.

Dominos Pizza’s efforts to use Pokemon as part of marketing were called into question by one user, who claimed Pokemon were tools of the devil against Islam. The user told Dominos to change its marketing or risk angering the public.

There’s no doubt that the Pokemon craze will continue for some time to come, and will only become more intense/insane when the app is officially launched in the Middle East. Pokemon advertising has been used smartly to get a younger audience to engage with traditional organizations such as museums and promote small businesses. Let’s hope that marketers here are just as savvy, whilst being aware of local sensitivities. If you’re not already doing it, get ready to go catch some Pokemon adverts in your vicinity soon!

And as an extra treat, here’s one television news clip on Pokemon from Kuwait, with a particular focus on how its turning youth into addicts.

Innovation, Data and Control – Squaring the Circle in Dubai

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Can governments in the Middle East find a way to balance control with innovation and access to data?

Can governments in the Middle East find a way to balance control with innovation and access to data?

Someone re-found their mojo this month. The English-language newspaper The National published a number of eye-opening pieces on two issues that are often discussed, but little understood.

The first was an investigative piece (yes, I know!) on the challenges that Dubai’s Road and Transport Authority (RTA) has faced with the disruption caused by app-based taxi providers such as Uber and its local rival Careem. To put the story into context, the RTA does not only regulate taxis in the Emirate of Dubai, but it also manages its own fleet of taxis.

The piece, which is a fascinating insight into how the Emirate is not only run but also how it is looking to balance control with innovation, poses the question of how a government which controls much of the business in the country promotes innovation whilst protecting its revenues. For me, the key paragraphs in the article, written by the newspaper’s business editor Mustafa Alrawi, are below.

In Dubai, The National understands, Uber and Careem have narrowly escaped a clampdown by the regulator that would have significantly curtailed their abilities to operate. The biggest issue has been the alleged failure to maintain prices above taxi fares. On its website Uber states that “ … in Dubai, regulations require our fares be 30 per cent higher than taxi fares”.

It is understood, however, that the regulator had been planning a far stronger response to the practices of private hire companies booked by smartphone app, ahead of new regulations to address the emergence of technology-led companies in the transport sector. These regulations are expected next year, according to previously reported comments from the RTA.

It is understood that the Dubai government stepped in before the row escalated to ensure that innovative companies such as Uber and Careem would not be hamstrung by any action by the RTA. The circular is understood to represent a kind of temporary truce between the regulator and the technology firms maintaining the status quo for now.

A second article the following day in The National touched on another important issue for the country – that of statistics and control over information. Here’s the introduction:

A new law that demands companies seek government approval before carrying out surveys in Dubai could damage the property sector and discourage research in the emirate, experts have warned.

The Dubai government announced a law late last month intended to help enable the Dubai Statistics Center “to establish an advanced statistics system”, according to a statement. But experts zoomed in on a provision in the new law that forbids private companies from “conducting any survey[s] without obtaining authorisation from the Dubai Statistics Center”.

As pointed out by one of those interviewed, there’s no such thing as a data vacuum. The lack of any official data will be filled by rumours, which can prove to be much more damaging.

Professor Joseph Kadane, chair of the American Statistical Association’s committee on scientific freedom, which produces reports for the United Nations on best practice in government statistics, warned that the new law would likely lead to the spread of “uninformed rumours and uncertainty about the extent of the downturn” in Dubai’s property market.

“This will do far more harm to Dubai’s economy than allowing private surveys to be conducted and published,” Mr Kadane said. “International investors, in particular, are sensitive to the quality of the information available to them in deciding where to invest.”

Both articles touch on fundamental issues relating to innovation and data. The underlying theme is control. Governments in the Middle East have long controlled everything around them, including their economies. In today’s digital world, where innovation can come out of nowhere and where data can be created and spread in an instant, governments need to understand that the control of yesterday is no longer possible and instead look to collaborate.

And, on a final note it’s great to see good local reporting. I hope The National keeps it up.