Ride hailing giant inDrive sees growth in Pakistan

LAHORE: In a city defined by its relentless energy and fast-paced life, a ride-hailing service is charting a different course. inDrive is not just transporting people, it is striving to drive social change in Karachi, Pakistan’s sprawling metropolis. Country Lead at inDrive Pakistan Muhammad Awais Saeed shared a bold vision in an interview with The News -- one that extends beyond profits to prioritise community empowerment.

inDrive is making a strategic push into Karachi, viewing the city as a key market. “Karachi is our major focus this time,” Saeed stated, highlighting its immense potential. But this is not merely a business expansion -- it is an effort to create meaningful change.

One example is inDrive’s Ramazan campaign, where the company is donating 10 per cent of its commission from smaller rides to social causes. “This is not just a token gesture,” Saeed noted. “We are building three playgrounds in government schools in Karachi, creating safe spaces for children to play and grow.” This initiative builds on previous community projects in Karachi, Lahore and Islamabad, reinforcing inDrive’s commitment to social responsibility.

While its social initiatives make an impact, inDrive’s business growth is equally remarkable. The company has achieved a robust 26 per cent year-on-year growth and expects even higher gains this year, driven by Pakistan’s economic recovery. “Our growth is 26 per cent year-on-year, and we expect even more in Pakistan this year,” Saeed said, adding that inDrive sees substantial potential in Tier 2 cities, where the market remains largely untapped.

“The potential is unlimited,” he emphasised, comparing ride-hailing adoption in Pakistan to developed nations. Cities like Faisalabad, Multan and Peshawar (Tier 2), along with Sialkot, Gujranwala, Sargodha, Bahawalpur and Hyderabad (Tier 3), represent key areas for expansion. inDrive is often the sole ride-hailing service in these regions, giving it a competitive edge.

Saeed pointed out that historically, transport solutions in Tier 2 cities have been underdeveloped due to socio-economic factors. Many workers rely on company-provided transport, while others use buses, rickshaws, or motorbikes. inDrive aims to bridge these gaps by providing accessible transport solutions. Pakistan’s ride-hailing market is as diverse as its population. “Around 20 per cent of our rides involve three-wheelers, while cars account for 50 per cent and bikes for 30 per cent,” Saeed explained. inDrive is also breaking gender barriers in mobility, with 60-65 per cent of its users being women. “This proves the company’s success in providing safe and reliable transport for women,” he added. Women tend to prefer cars, while men opt for bikes, and families frequently use rickshaws.

Ride cancellations remain a major frustration for commuters, but inDrive claims a significant advantage over competitors. “If other services have a 100 per cent cancellation rate, ours is only 20 per cent,” Saeed asserted, crediting inDrive’s unique fare negotiation system for its reliability.

Regarding Pakistan’s regulatory landscape, Saeed described it as “conducive” and confirmed that inDrive complies with authorities such as the Punjab Revenue Authority, Sindh Revenue Board, and KPK Revenue Authority. “We already pay 5.0 per cent sales tax on each ride’s GMV,” he said, adding that inDrive is also working with the government on safety and security measures. However, he cautioned that raising the tax rate to 15 per cent would negatively impact customers, particularly in an economy where incomes have stagnated. Saeed also addressed industry-wide challenges, including fraud, low financial literacy and the reliance on cash transactions. “Pakistan’s market is discount-driven, and fraud is a significant issue,” he noted. He emphasised the need for greater awareness about app-based services and the challenge of overcoming a general trust deficit.

On the environmental front, inDrive is exploring sustainability initiatives. The company is in discussions with the Punjab government regarding electric vehicles (EVs) and is investing in Easy Bikes for EV bike-swapping stations. It is also working with investors to introduce Prince Volt cars to the Pakistani market.

inDrive’s mission is to challenge injustice by creating opportunities for individuals, businesses and communities worldwide. Its vision goes beyond ride-hailing, encompassing mobility, delivery and financial services as part of a broader effort to build an urban superapp. “We aim for sustainable growth while addressing systemic inequalities in various industries and markets,” Saeed concluded.