Uber discontinues ride-hailing services in 5 cities

Uber Technologies on Tuesday notified users in Pakistan that the company is discontinuing its services in Karachi, Islamabad, Faisalabad, Multan and Peshawar on an immediate basis. However, the firm has decided to continue operating in Lahore.

“We’ve made the decision to cease operating the Uber app in Karachi, Multan, Faisalabad, Peshawar and Islamabad,” the company said in a statement. “Uber remains committed to Pakistan – we will continue to serve these five cities with our subsidiary brand Careem and continue to operate the Uber app in Lahore.”

The company acknowledged that “this is a difficult time for the teams who have worked incredibly hard to build this business over the past few years.” In the statement, it appreciated everyone’s contributions and stated that it prioritised minimizing the impact on its employees, drivers and riders.

It further added that riders and driver partners may use the Careem app in these five cities. The Uber app will continue to be available in Lahore with new product launches to support earners during these difficult times, the company said.

“We will communicate with riders and driver partners who use the Uber app in Karachi, Multan, Faisalabad, Peshawar and Islamabad about how they can use the Careem app in their city,” the statement read. “When we acquired Careem, it was always our belief that the two companies could come together to complement each other’s strengths and better serve the region through tailored experiences.”

Customers of the company received a notification that read “We have made the difficult decision to no longer offer the Uber services in Karachi, Islamabad, Faisalabad, Multan and Peshawar as of 11 October 2022.”

It further added that its subsidiary Careem might reach out to users to make their rides in the five cities a seamless experience.

For people concerned with privacy of their data, Uber wrote, “if you do not want your details to be shared with Careem, please let us know by filling a form by 14 October 2022.”

“For the past five years, we are grateful to have been part of your everyday life to help you move around those five cities using the Uber app,” it said.

In comments to Business Recorder, Careem said that it continues to be bullish on its commitment to Pakistan.

“Since our inception in 2016, we have invested over $100 million, created over 800,000 income opportunities for captains in Pakistan and had 9 million registered customers on our super app,” Careem said. “We will continue to serve customers across 10 operational cities.”

The company also added that it is currently investing in growing its operations and providing its customers with safer, more reliable and affordable mobility solutions.

Careem suspends food-delivery business in Pakistan over unfavourable economic conditions

“We are focused to our purpose of simplifying and improving lives in the country. We strongly believe in our super app vision and a successful ride-hailing business is fundamental to it,” Careem said. “We continues to serve customers in Karachi, Lahore, Islamabad, Multan, Faisalabad and Peshawar, confidently, in addition to 5 other cities where we operate.”

In June 2022, Careem suspended its food delivery business in Pakistan, as it looked to redirect efforts to its ride-hailing and delivery verticals.