Uber announced on Tuesday via Geo News that it will halt its operations in Pakistan. However, the company clarified that its subsidiary, Careem, will remain active in the country. “We’ve opted to discontinue the Uber app in Pakistan,” said a spokesperson, adding, “Our subsidiary, Careem, will persist in offering ride-hailing services across Pakistan through its app.
Following its 2022 declaration to confine operations in Pakistan solely to Lahore, Uber has now elected to terminate its services throughout the nation. This resolution, as reported by Geo News, mirrors Uber’s prior announcement of discontinuing its app in Karachi, Multan, Faisalabad, Peshawar, and Islamabad. Notably, Uber’s acquisition of Careem in March 2019 for USD 3.1 billion underscores Careem’s significance as a major player in the Middle East, with its ride-hailing services continuing unabated across Pakistan.
The decision to withdraw from Pakistan comes as Uber navigates strategic adjustments in its global operations. By prioritizing its subsidiary brand, Careem, Uber aims to maintain a strong presence in the region while streamlining its own operational footprint. This move underscores the evolving dynamics of the ride-hailing industry and highlights the strategic importance of regional partnerships and acquisitions in sustaining market competitiveness.
Following the acquisition, Careem became a fully owned subsidiary of Uber, retaining its distinct identity, services, and app. As reported by Geo News, drivers previously associated with Uber now have the option to transition to Careem Rides while maintaining their autonomy as independent transportation operators. This strategic decision aligns with Uber’s global expansion strategy, focusing on regions with significant potential for sustained growth.
Uber emphasized its collaborative approach with Careem Rides teams to minimize disruptions for drivers accustomed to the Uber app. Careem currently operates in ten cities across Pakistan, including Quetta, Gujranwala, Sialkot, Abbottabad, Faisalabad, Lahore, Peshawar, Multan, Karachi, and Islamabad, maintaining a robust presence in key urban centers nationwide.