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Tuesday May 21, 2024

Uber discontinues operation of app in Pakistan

Renowned ride-hailing platform will continue operations of subsidiary Careem app

By Web Desk
April 30, 2024
Representation image of ride-hailing app Uber. — AFP
Representation image of ride-hailing app Uber. — AFP

Multinational transportation company Uber on Tuesday announced discontinuing the operation of its app in Pakistan which already scaled back its business and limited it to Lahore back in 2022 which is continued till now.

"We've made the decision to cease operating the Uber app in Pakistan. Our subsidiary brand Careem will continue to operate, with the Careem app offering ride-hailing services across Pakistan," Uber's spokesperson said in a statement.

"We've made the decision to cease operating the Uber app in Karachi, Multan, Faisalabad, Peshawar and Islamabad," the company had said back then.

It is to be noted that Uber acquired its then Middle East rival Careem for $3.1 billion in March 2019.

Under the deal, Careem became a wholly owned subsidiary of Uber but continues to operate independently with its own branding, services and separate app.

Meanwhile, drivers associated with Uber have the option to sign up for Careem Rides and continue to operate their independent transportation businesses.

The decision, according to the company, was line with Uber's global growth strategy, focus on markets where we have opportunities for sustainable growth.

"We work closely with Careem Rides teams to minimise the impact on drivers that use the Uber app," Uber spokesperson had said.

As of now, Careem operates in 10 cities across Pakistan: Karachi, Islamabad, Lahore, Peshawar, Multan, Faisalabad, Abbottabad, Gujranwala, Sialkot and Quetta.