Careem: Raising a Unicorn

This case follows two ex-McKinsey consultants, Magnus Olsson and Mudassir Sheikha, who in search of their true purpose decide to found Careem, a Dubai-based ride-hailing service. Following its launch in July 2012, Careem experiences rapid growth of 30% per month in the UAE and other countries in the MENA region, surpassing the co-founders’ expectations. However, as a result of such immense growth, the startup struggles with various operational and cultural organizational tensions. These challenges are described from the perspective of the founders and through the eyes of Deepika Thakur, one of the early employees. By 2014, in order to succeed in Saudi Arabia, the largest and most complex market in the Gulf, Olsson and Sheikha recognize the importance of finding a strong leader to head the Saudi operations. They have their sights on a specific German-Saudi entrepreneur, Abdulla Elyas, but he has so far declined both of their initial proposals to join Careem. In the backdrop, Uber has developed a successful track record in the West, raising close to $2 billion dollars globally, and has a growing presence in the UAE following its launch there in August 2013. Finding themselves at a crossroads, Olsson and Sheikha must figure out how to address several critical organizational issues, decide how to bring Elyas on board, and ensure a robust strategy to maintain its leadership position in the region.