Uber, the renowned American transportation giant, has decided to suspend its operations in Pakistan, shifting its focus to its subsidiary brand, Careem.
In an announcement reported by a media house on Tuesday, an Uber spokesperson stated, "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."
This move follows Uber's earlier decision in 2022 to scale back its operations in Pakistan, restricting them to Lahore. Now, operations in Karachi, Multan, Faisalabad, Peshawar, and Islamabad are also being halted.
Uber's acquisition of its Middle East rival, Careem, for USD 3.1 billion in March 2019 played a significant role in this decision. Although Careem became a wholly-owned subsidiary of Uber, it has retained its independence in branding, services, and app.
For Uber drivers, the transition offers the option to sign up for Careem Rides and continue their transportation businesses independently, as reported by Geo News. This strategic move aligns with Uber's global growth strategy, focusing on markets with potential for sustainable expansion.
The decision to exit certain cities in Pakistan highlights Uber's commitment to working closely with Careem Rides teams to mitigate any adverse impact on drivers who previously used the Uber app.
Despite Uber's exit, Careem continues to thrive, operating in 10 cities across Pakistan, including Karachi, Islamabad, Lahore, Peshawar, Multan, Faisalabad, Abbottabad, Gujranwala, Sialkot, and Quetta.
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