Uber has pulled out its ride services from Pakistan after facing cutthroat competition from local players in the market. However, Uber continues to provide services from its subsidiary app, Careem, across the country.
As reported by PTI, an Uber spokesperson said, “Our subsidiary brand, Careem, will continue operations offering ride-hailing services across Pakistan.”
In 2019, Uber made headlines by acquiring its rival, Careem, for a whopping USD 3.1 billion. The acquisition was accompanied by assurances that the two companies would maintain separate regional services and brands. However, recent developments have signalled a significant shift in strategy.
In 2022, Uber took a decisive step by halting its operations in several key cities across Pakistan, including Karachi, Multan, Faisalabad, Peshawar, and Islamabad. The decision left Lahore as the sole operational base, where services continued to be offered through the Careem platform alongside the Uber app.
A spokesperson for Uber announced the cessation of operations in Pakistan effective immediately, with a clear emphasis on redirecting efforts towards bolstering the Careem app. The spokesperson also assured, “Users with remaining balances can reclaim them and receive free rides on Careem.”
This strategic pivot comes at a time when the ride-hailing market in Pakistan is witnessing unprecedented growth, fueled by the emergence of new local players offering competitive rates. The influx of competition has gradually eroded the once-dominant position of Careem and Uber, paving the way for alternative services like In-Ride to gain popularity among consumers.