Uber announced on Tuesday its decision to discontinue its ride-hailing app in Pakistan. A spokesperson stated, “We’ve made the decision to cease operating the Uber app in Pakistan.” However, they assured that Careem, a subsidiary of Uber, would continue its operations, providing ride-hailing services and earning opportunities for drivers across Pakistan.
The decision follows Uber’s acquisition of its rival Careem in 2019 for $3.1 billion. Despite the merger, both companies had pledged to maintain their individual regional services and brand identities.
Since October 2022, Uber had already halted operations in several Pakistani cities, including Karachi, Multan, Faisalabad, Peshawar, and Islamabad. In Lahore, Uber continued to operate alongside Careem. However, Uber informed users via email that it would no longer offer services in Lahore starting April 30.
The email notified users of the transition to Careem for ride-hailing services and provided options for opting out of sharing their details with Careem. Additionally, users were assured that any remaining Uber Cash balance would be addressed in due course. As an incentive, users were offered a 50 per cent discount on five rides with Careem.
Upon attempting to access the Uber app in Lahore, users were greeted with a message stating, “Uber no longer in Lahore,” and were directed to use Careem instead. Careem also reached out to users to facilitate the transition process.
Overall, Uber’s decision marks a significant shift in the ride-hailing landscape in Pakistan, with Careem poised to continue serving customers amid the changing market dynamics.