Careem’s new Economy Services will cost only Rs.18 per kilometer

Chauffeur car booking service Careem has just announced a considerably cheaper alternative to their car-services and it is scheduled to go live tomorrow in Lahore.

Called the “Economy Service”, it will give users an extra option in the app to choose either the Economy Car or the Business Car. Compared to the more expensive Business option, the Economy one would be as much as 25-30% cheaper and will have a mix of Japanese and locally-assembled cars.

“We are very excited to launch economy cars in Pakistan, as this will provide another option for people to utilise our service at economical rates.” said Managing Director Junaid Iqbal. “This is yet another step to revolutionise the transportation sector and serve the people of Pakistan.”

The Economy Service is also available for both booking options; “Now” and “Later”. The base fare for now booking is pegged at Rs. 100 and Rs.200 for later booking. Both the booking options will charge you Rs.18/km for distance travelled, considerably lower than the Rs.25 charged by the Business Service. The waiting charges are Rs.200 per hour.

The Economy Service will go live in Lahore on Monday, 11th April, but residents of Karachi and Islamabad will have to wait a while more.

After entering Pakistan last year, Careem has quickly become a leader in car-booking services in Pakistan and also acquired taxi-hailing and ride-sharing startup Savaree last month. With Uber stepping up its efforts in the country, Careem is trying even harder to hold on to its lead and the introduction of a cheaper service will appease a lot of people who were previously resistant to trying out Careem due to its price.