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Friday, February 16, 2024

Why has Uber shut down its operations in major cities of Pakistan?

Uber Technologies will discontinue its ride-hailing services app in five cities in Pakistan including Karachi and Islamabad, in a move that will reduce market overlap between the U.S. firm and its Middle East unit Careem.

A well-known ride-hailing app Uber is ceasing operations in a number of Pakistani cities. The ride-sharing service just stated that it will cease operations in Islamabad, Karachi, Multan, Faisalabad, and Peshawar, among other places. The termination is effective as of right now.

From now on, if you try using the Uber app in any of the aforementioned cities, it will inform you that it is no longer available in your city. Instead, it tells you to book a ride using Careem, which was acquired by Uber back in 2020.

Read more: Uber adds ‘valet’ car rentals as it looks to rev rides

The same prompt may not appear for everyone, but options for booking a ride will be greyed out for some. Trying to book a ride will now give you a message that says “Unfortunately, Uber is currently unavailable in your area”.

However, Uber reminds its users that the service is still operable in Lahore. Here is what the company says:

“For the past five years, we are grateful to have been part of your everyday life to help you move around those five cities using the Uber app. See you in Lahore! As a goodwill gesture, we have waived all driver partner arrears owing to Uber and are offering a one-time goodwill payment to eligible drivers. Eligible drivers have received all information related to this gesture.”

Read more: Uber reports losses: pandemic kills demand for taxi services

It said drivers and riders in the five cities can switch to the app run by Careem, the Dubai-based company it purchased for $3.1 billion in 2019 to dominate the ride-hailing markets in the Middle East and Pakistan.

The exit comes as the South Asian country faces an economic meltdown exacerbated by devastating floods this summer that killed more than 1,700 and caused an estimated $30 billion in damage.