Uber ceases operation of app in Pakistan

Renowned ride-hailing platform Uber Tuesday announced ceasing the operation of its app in Pakistan saying that its subsidiary brand Careem will continue to operate in the country.

"We've made the decision to cease operating the Uber app in Pakistan. Our subsidiary brand Careem will continue to operate, with the Careem app offering ride-hailing services across Pakistan," Uber's spokesperson said in a statement.

The development comes as Uber, back in 2022, had announced scaling back its operations in the country and limiting it to Lahore — which the company had continued till now.

"We've made the decision to cease operating the Uber app in Karachi, Multan, Faisalabad, Peshawar and Islamabad," the company had said back then.

It is to be noted that Uber acquired its then Middle East rival Careem for $3.1 billion in March 2019.

Under the deal, Careem became a wholly owned subsidiary of Uber but continues to operate independently with its own branding, services and separate app.

Meanwhile, drivers associated with Uber have the option to sign up for Careem Rides and continue to operate their independent transportation businesses.

The decision, according to the company, was line with Uber's global growth strategy, focus on markets where we have opportunities for sustainable growth.

"We work closely with Careem Rides teams to minimise the impact on drivers that use the Uber app," Uber spokesperson had said.

As of now, Careem operates in 10 cities across Pakistan: Karachi, Islamabad, Lahore, Peshawar, Multan, Faisalabad, Abbottabad, Gujranwala, Sialkot and Quetta.