Uber shuts down operations in Pakistan, blames local rivals

The global ride-hailing service Uber has ended its operations in Pakistan due to fierce competition from local businesses. The company had already ended its services in certain key cities in 2022. This was confirmed by a spokeswoman today.

According to Press Trust of India, the spokesperson stated, “Our subsidiary brand, Careem, will continue operations offering ride-hailing services across Pakistan.”

For USD 3.1 billion in 2019, Uber purchased its competitor Careem.

The two businesses had said that they will keep running their separate independent brands and regional services.

In 2022, Uber had already stopped operating in Islamabad, Peshawar, Faisalabad, Karachi, and Multan.

It was using the Careem app and the Uber app in Lahore to operate in these five cities.

According to the spokesman, Uber’s operations in Pakistan have stopped as of Tuesday, and the business will now concentrate on expanding its Careem app there. Users of Uber will need to switch to Careem.

Additionally, he added that Uber passengers with balances in their accounts would eventually be able to get their money back and receive free rides on Careem.

Since more local firms have entered the market and are offering more competitive prices, ride-hailing and sharing applications have become more popular in Pakistan.

This caused Careem and Uber’s dominance in Pakistan to erode.

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Right now, the most well-liked option is In-Ride, which allows customers to haggle with the driver for the fee.