Can Yango Break Pakistan’s Ride-Hailing Curse?
Written by; Saad Ali
Muhammad Usman
Ahmed Raza Khan
Talha Shehzad
From crowded buses to unpredictable rickshaw rides, from negotiating fares to enduring long waits, commuting in Pakistan has been a battle of spirit and patience.
Ride-hailing apps were game changers for the public offering low fares and convenience. However, sustaining this model was a daunting task.
With Yango being the latest entrant, one can’t help but wonder: will it succeed where others struggled, or will it meet the same fate?
Careem’s launch in 2015 sparked a wave of excitement, shortly followed by Uber in 2016. Aggressive promotions, low fares, and a focus on safety fueled initial success, i.e., the low fare trap.
The popularity of these apps grew exponentially as a result of herd behaviour. However, Pakistan’s economic challenges made sustaining this model a challenge.
As a result, in 2024 Uber exited the Pakistani market and Careem lost most of its active users due to local competition and operational challenges.
Other players like Airlift and Swvl also entered the market with innovative ideas. Airlift offered fixed-route mass transit using buses, while Swvl offered more routes and convenience. Yet, their low-fare strategy mirrored Careem and Uber.
Both failed to sustain this model. Yango made its debut in Pakistan in 2023 and like its predecessors also used the low[1]fare strategy.
However, Yango brings global experience to the table. But, this raises concerns: Will Yango be able to avoid the pitfalls that its predecessors couldn’t?
Yango could take inspiration from Grab, Southeast Asia’s dominant ride-hailing app. Grab created multiple revenue streams, reducing its reliance on ride-hailing alone.By 2023, Grab’s revenue reached $2.3 billion, with a significant portion coming from non[1]ride-hailing services.
Two other notable players going strong in the Pakistani market are Bykea (established in 2016) focused on motorcycle-based transport and delivery services, and inDrive (entered in 2021) adopted a unique bid-based model.
This war of low fares is far from over. To succeed, Yango must learn from its ancestors and competitors. Perhaps, expanding into complimentary services, and strategic partnerships might be the key to long-term success.
Yango’s ability to adapt to Pakistan’s unique market dynamics, diversify its services, and balance customer expectations with operational sustainability will determine its fate. Will Yango break the curse, or will it become another casualty in the war of low fares? Only time will tell.
(undergraduate student at the University of Central Punjab)
