This Mobility Startup is Doing What Others Couldn’t – But How?

The founder of Karachi-based mobility startup BusCaro Maha Shahzad recently shed light on the company’s journey and its mission to resolve Pakistan’s chronic public transportation issues. With over a decade of experience in the tech ecosystem, the founder’s career began with Foodpanda, followed by a role at Swvl, where she was part of the team that inspired massive growth before eventually founding BusCaro after Swvl’s closure. The BusCaro founder told ProPakistani that the company aims to provide affordable, safe, and efficient transportation, particularly in a market where public transport infrastructure is inadequate, especially in cities like Karachi. The company operates with a dual business model, offering services to both businesses (B2B) and customers through businesses (B2B2C). The founder emphasized that BusCaro’s model focuses on high-capacity vehicles which are more economical than car-based ride-hailing options. In terms of operations, the startup currently has a fleet of around 600 vehicles and offers diverse options from sedans to high-capacity coasters, depending on client requirements. Its B2B services include dedicated employee commuting solutions for companies, while the B2B2C model allows employees or students to opt into a commuting service directly at cheaper costs through optimized routes. Maha said BusCaro is doing quite well despite facing a tough environment over the past few years. The founder revealed that the company generates over $4 million in annual revenue, with contribution margins already positive. While they have yet to break even due to high technology costs, the company is targeting profitability by the first half of next year. The startup’s focus on optimizing peak-hour utilization and cross-utilization of vehicles has kept operational costs low. Its gross and net margins are positive, although EBITDA remains negative—a common scenario for high-tech startups still scaling up. The founder remains confident that break-even is near, with double-digit margins projected in the near future. The company plans to continue its focus on daily commute solutions rather than expanding into inter-city routes. The idea is solving the mobility problem within cities is a more pressing need. With expansion already underway into cities like Multan, BusCaro sees plenty of potential to grow within the three cities it primarily operates in i.e. Karachi, Lahore, and Islamabad. Despite its growing fleet, BusCaro has chosen not to advertise on vehicles or through traditional B2C marketing channels, relying instead on direct client relationships and organic growth. Maha said the company employs over 50 people, and their current model of working with external vendors has allowed them to maintain an asset-light structure that contributes to their financial sustainability, so ads are unnecessary at the time. Looking forward, the founder reiterated BusCaro’s commitment to solving Pakistan’s public transport crisis with a business model that prioritizes affordability, safety, and sustainability over rapid, costly expansion. It bears mentioning that BusCaro has made it to the final round of Paklaunch (PL) Meet the Drapers where it will pitch to Tim Draper and a panel of investor judges along with myco.io and LAAM. The event is scheduled for October 4, 2024.