| Welcome to Global Village Space

Wednesday, May 22, 2024

Uber Ceases Operations in Pakistan

Uber discontinues operations in Pakistan, shifting its focus to its subsidiary Careem, prompting a transition in the local ride-hailing market dynamics.

Uber announced on Tuesday its decision to discontinue operations in Pakistan, signaling a shift in its regional strategy. This move comes as part of the company’s broader reevaluation of its presence in the country. A spokesperson for Uber confirmed the decision, citing the company’s subsidiary, Careem, as the continued provider of ride-hailing services across Pakistan.

The decision to cease Uber’s app services follows a series of operational adjustments initiated by the company in recent years. In 2019, Uber acquired its competitor, Careem, for a significant sum of $3.1 billion. Both companies had pledged to maintain their distinct identities and regional operations, leveraging their combined strengths to enhance services for users and drivers alike.

In October 2022, Uber had already scaled back its operations in several major Pakistani cities, including Karachi, Multan, Faisalabad, Peshawar, and Islamabad. The company had opted to consolidate its operations in these areas under the Careem brand while maintaining its presence exclusively through the Uber app in Lahore. However, the recent decision to quite app in Lahore marks a complete withdrawal from the Pakistani market, with ride-hailing services now exclusively provided by Careem.

Read More: ASP Sheharbano’s Wedding Photos go Viral

Users in Lahore were notified of the transition via email, where Uber communicated its “difficult decision” to discontinue app services effective April 30. The email assured users that ride-hailing services would seamlessly continue through Careem, offering a smooth transition for Uber’s customer base. Additionally, users were informed about reclaiming Uber Cash balances and offered a 50% discount on five rides with Careem to facilitate the transition process.