Uber has withdrawn its ride-hailing service from Pakistan after facing stiff competition from local companies in the market. However, Uber continues to offer its services across the country from its subsidiary app Careem.
“Our subsidiary brand Careem will continue to operate as a ride-hailing service across Pakistan,” an Uber spokesperson said, according to a PTI report.
In 2019, Uber made headlines when it acquired rival Careem for a whopping $3.1 billion. The acquisition included a guarantee that both companies would maintain separate regional services and brands. However, recent developments suggest a major shift in strategy.
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In 2022, Uber took the decisive step of ceasing operations in several major cities across Pakistan, including Karachi, Multan, Faisalabad, Peshawar, and Islamabad. This decision left Lahore as its only base of operations, where he continued to be offered services through his Careem platform alongside the Uber app.
An Uber spokesperson announced that it would cease operations in Pakistan immediately, with a clear focus on focusing its efforts on strengthening its Careem app. The spokesperson also assured that “users with balances can get their balances back and get free rides on Careem.”
This strategic shift comes at a time when Pakistan’s ride-hailing market is experiencing unprecedented growth with the emergence of new local companies offering competitive fares. The influx of competition has gradually eroded Careem and Uber’s once dominant positions, paving the way for alternative services like In-Ride to gain popularity among consumers.
