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In: Operations Management

Middle East Uber rival Careem says data of 14 million drivers and riders stolen in cyberattack...

Middle East Uber rival Careem says data of 14 million drivers and riders stolen in cyberattack

Careem, the Middle East rival to Uber, had the data of its 14 million customers and drivers stolen in a cyberattack, the company said on Monday.

The start-up became aware of the incident on January 14.

Careem has operations in 13 countries and in over 90 cities.

Careem, the Middle East rival to Uber, had the data of its 14 million customers and drivers stolen in a cyberattack, the company said Monday.

The start-up became aware of the incident on January 14. It said people who signed up to the platform after that date were not affected. Careem said since the incident, it has been investigating what happened and is working with law enforcement agencies.

"Careem has identified a cyber incident involving unauthorized access to the system we use to store data. While we have seen no evidence of fraud or misuse related to this incident, it is our responsibility to be open and honest with you, and to reaffirm our commitment to protecting your privacy and data," the ride hailing service said in an email to customers.

The company urged drivers and customers to update their passwords, look out for any unsolicited communication, avoid clicking links or downloading attachments from unfamiliar emails, and review bank account statements for any suspicious activity.

Careem has operations in 13 countries and in over 90 cities.

how does this effect the international business?

Solutions

Expert Solution

Answer:

Background:

Careem, the Middle East rival to Uber, says data of 14 million drivers and riders stolen in cyberattack. Careem has operations in 13 countries and in over 90 cities. People who signed up to the platform after that date were not affected. Careem said investigations are in progress since the reporting of incident. Careem has identified a cyber incident involving unauthorized access to the system. No evidence of fraud or misuse related to this incident seen. The company urged drivers and customers to update their passwords, look out for any unsolicited communication, avoid clicking links or downloading attachments from unfamiliar emails, and review bank account statements for any suspicious activity.

Effect on the international business:

Such issues in the large international business have a massive impact. Generally it is human tendency that we recall brands or large organizations by issues or problems. Thus problem and issues are the means of remembering them. This will have adverse impact on the Careem international business as below

  • Image dilution due to Cyber-attack: The issues like above of cyber attack will have impact on the image of the Careem international business. It will have adverse impact on the image of the Careem and people feels that Careem business do not have strong infrastructure to protect data in their system.
  • Careem Known for Cyber attack: Since it is an international business, it will be remembered for the cyber-attack for longer time. Cyber attacks are the issues which will last for longer time.
  • Customer will be afraid of business with Careem: Customer in the international market will be afraid of the cyber attack and will not be willing to do business with the Careem, due to fear of future cyber attacks.
  • Negative Branding in the market: The Cyber attack will result in negative banding marketing for the Careem business in the international market. Thus it will be difficult for the Careem business to replace this negative marketing in the international market.
  • More than 13 countries and 90 cities: the issue will have large impact as it runs the business in more than 13 countries and 90 cities. Proper issues management and communication needs to be carried out by the Careem business so that a positive message should reach to consumers in the international market.

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