Pakistan’s public transportation system has long been in disarray, especially in cities like Karachi, where unreliable and unsafe commutes are the norm. Two former giants, Swvl and Airlift, attempted to tackle this problem, offering alternatives to public transport. Yet, despite initial success, both faced challenges that eventually led to their exit. Now, BusCaro believes it has a sustainable model to make affordable, safe, and reliable transportation a reality for Pakistanis.
Here’s how Maha Shahzad, BusCaro’s founder and former head of Swvl Pakistan, plans to succeed where her predecessors couldn’t.
The Core Problem: Safe, Affordable Transportation 🚌
Public transport in Pakistan presents serious challenges, especially for women who often face harassment on their daily commute. The need for a safe, economical, and reliable bus service remains critical in major Pakistani cities. According to Maha Shahzad, the core problem that Swvl and Airlift addressed was very real, but their approaches—while groundbreaking—didn’t end up being sustainable in Pakistan’s tough economic climate.
“When Swvl shut down, I got hundreds of messages from disgruntled customers who wondered how they would commute.” — Maha Shahzad, Founder of BusCaro
Why Did Swvl and Airlift Falter? 📉
Swvl and Airlift both emerged as promising solutions for Pakistan’s transport crisis. However, they encountered roadblocks:
- Airlift’s Pivot: Originally focused on bus-hailing, Airlift transitioned to a quick-commerce model during the pandemic. Although ambitious, this pivot didn’t align with its original mission, and after a failed funding round, Airlift shut down operations in mid-2022.
- Swvl’s Rapid Expansion: Swvl’s growth strategy relied on aggressive scaling, but rising interest rates and inflation hit hard. Despite its popularity, Swvl couldn’t keep up with shifting economic conditions, ultimately scaling back and ceasing operations in Pakistan.
How BusCaro Plans to Do Things Differently 🚀
Maha Shahzad, inspired by Swvl’s success and the overwhelming demand for a reliable transport service, launched BusCaro with a more sustainable business model:
- A B2B2C Approach: BusCaro collaborates with employers who subsidize their employees’ commute, creating a stable revenue stream. This approach keeps customer acquisition costs (CAC) low, focusing on corporate clients rather than individual riders.
- Efficient Route Optimization: By partnering with employers, BusCaro can optimize routes since employees from the same company travel to the same location. This setup improves operational efficiency and minimizes costs.
- Focusing on Unit Economics: Instead of rapid scaling, BusCaro emphasizes sustainable growth. Maha’s approach is to balance service quality with realistic economics to ensure long-term viability in Pakistan’s market.
Why It Matters: A Step Toward Safe Transportation for Women 🌸
For women in particular, safe transportation is essential. BusCaro’s service model directly addresses safety concerns by providing a more controlled commuting environment. If successful, this approach could inspire more inclusive public transport solutions across Pakistan.
The Road Ahead 🚐
BusCaro has the advantage of learning from Swvl and Airlift’s experience and adapting its model to Pakistan’s unique challenges. By combining sustainable unit economics with targeted route optimization, BusCaro hopes to establish itself as the go-to solution for Pakistan’s long-standing transport issues.
Ready to learn more? Check out Maha’s full interview on Realistic Optimist.
