uber abruptly ends app in pakistan amidst guessing game


Published on: May 6, 2024.

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Uber to Halt App Operations in Pakistan, Careem Continues Services

Uber, the popular ride-hailing platform, has announced that it will be discontinuing its app operations in Pakistan. However, its subsidiary brand, Careem, will continue to provide ride-hailing services across the country. This decision comes after Uber’s acquisition of Careem in 2019 for a staggering $3.1 billion.

In 2022, Uber had already limited its operations to Lahore, while halting its services in Karachi, Multan, Faisalabad, Peshawar, and Islamabad.

Uber users in Lahore received an email notifying them of the discontinuation of the Uber app services starting from April 30. The email also mentioned that users with remaining Uber Cash balance in their Uber Wallets would receive further communication regarding the process of reclaiming their balance.

Although no specific reason was cited by the Uber spokesperson for this abrupt decision, many speculate that the closure was influenced by the lack of financial viability due to soaring fuel prices and overhead costs.

The Uber-Careem Deal

The deal between Uber and Careem took place in 2019. Uber acquired Careem for an impressive $3.1 billion. This acquisition consolidated the ride-hailing market in Pakistan under one major player, Careem.

Continued Services by Careem

Despite Uber’s decision to halt its app services, Careem will continue to operate and provide ride-hailing services in Pakistan. Users can rely on the Careem app for convenient transportation options.

Implications for Users

With the discontinuation of the Uber app in Lahore, users will need to switch to the Careem app for their ride-hailing needs. It is recommended that Uber users in Lahore download the Careem app to ensure a seamless transition to the platform.

Conclusion

Uber’s recent decision to halt its app operations in Pakistan, with the exception of Lahore, has caused users to turn to the reliable services of Careem. As fuel prices and costs of overheads rise, it becomes increasingly important for ride-hailing services to adapt to ensure financial viability in the market.

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