Uber has said that it has shut down operations in Pakistan. US-based Uber entered Pakistan in March 2016. The decision comes as the ride-hailing app is reportedly facing strong competition from local Pakistani cab apps.
According to news agency ANI, Uber said that the decision to shut operations in Pakistan is in line with Uber’s global growth strategy and focuses on markets where we have opportunities for sustainable growth.
“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,” the spokesperson was quoted as saying.
Uber ceased operations in Karachi, Multan, Faisalabad, Peshawar and Islamabad in 2022. It had been operating in these five cities through Careem and the Uber app in Lahore.
Uber acquired Careem’s Pakistan operations for $3.1 billion in 2019. Under the deal, Careem became a wholly owned subsidiary of Uber but continues to operate independently with its branding, services and separate app.
What it means for Uber users, drivers in Pakistan
According to an Uber Pakistan spokesperson, users on Uber will have to switch to Careem. Users who had balance in their accounts would be able to reclaim their amounts in due course and be offered free rides on Careem.
Meanwhile, drivers associated with Uber have the option to sign up for Careem Rides.
“We work closely with Careem Rides teams to minimise the impact on drivers that use the Uber app,” Uber spokesperson said.
The report claims that this development has eroded the dominant position previously held by Careem and Uber in Pakistan. Currently, the most popular service appears to be In-Ride, which allows users to negotiate fares directly with the driver.
As of now, Careem operates in 10 cities across Pakistan: Karachi, Islamabad, Lahore, Peshawar, Multan, Faisalabad, Abbottabad, Gujranwala, Sialkot and Quetta.
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