Uber has suspended all services in Pakistan due to intense competition from local companies. This decision was confirmed by a spokesperson today. Although Uber reportedly ended operations in major cities last year, its subsidiary Careem plans to continue providing ride-hailing services across Pakistan. The decision follows Uber’s acquisition of Careem in 2019 for a whopping $3.1 billion. At the time, both companies were committed to maintaining separate services and identities.
“Careem, our subsidiary brand, will continue its operations providing ride-hailing services across Pakistan,” a spokesperson said, according to a report in the Press Trust of India.
Uber had already suspended its services in cities such as Karachi, Multan, Faisalabad, Peshawar, and Islamabad in 2022. These cities were served by Careem and Uber apps in Lahore.
From now on, Uber users in Pakistan will have to switch to Careem as Uber’s operations in Pakistan have been completely suspended. A spokesperson said Uber users with balances in their accounts will receive refunds in stages. Additionally, free rides on Careem will also be provided.
The rise of local ride-hailing and sharing apps has caused major changes in the Pakistani market. These local companies are stepping in and offering more competitive prices. As a result, both Careem and Uber face challenges in maintaining their positions.
In-Ride, a service that allows drivers to negotiate fares directly with drivers, is gaining in popularity. This further impacted the dominance of Careem and Uber in the Pakistani market.
Despite Uber’s exit, Careem aims to continue providing reliable ride-hailing services to the people of Pakistan.
Uber launched in Pakistan on March 3, 2016, starting with Lahore and later expanding to other cities. There are several ride-hailing apps available in Pakistan, including Careem, Bykea, Siayara, Airlift, Bolt, SWVL, and InDrive34. These apps offer a variety of services that cater to the diverse transportation needs of the Pakistani market, from car rides to bike rides and even bus-based commuting solutions.
