American multinational transportation company, Uber has announced to suspend its operations in Pakistan and said that its subsidiary brand Careem will continue to operate in the country, Geo News reported on Tuesday. “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.
The decision comes after Uber in 2022 announced to scale back its operations in Pakistan and limit it to Lahore, which the company has continued till now. “We’ve made the decision to cease operating the Uber app in Karachi, Multan, Faisalabad, Peshawar and Islamabad,” the company had said back then, Geo News reported. It is to be noted that Uber acquired its then Middle East rival Careem for USD 3.1 billion in March 2019.
Under the deal, Careem became a wholly owned subsidiary of Uber but continues to operate independently with its 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, Geo News reported.
The decision, according to the company, was in line with Uber’s global growth strategy, focuses 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.