Uber app closes Pakistan chapter

LAHORE: The Uber app will cease to operate in Lahore, the only city where it still operated under this name, and will be taken over by subsidiary Careem in Punjab’s provincial capital.

“We’ve made the decision to cease operating the Uber app in Pakistan,” an Uber spokesperson told Business Recorder in a statement on Tuesday.

“Our subsidiary brand Careem will continue to operate, with the Careem app offering ride-hailing services across Pakistan and earning opportunities for drivers.’’

The decision is being seen as in line with Uber’s global growth strategy where it has rolled back or merged operations with its subsidiary.

Back in October 2022, Uber had announced ceasing its app operations in Karachi, Multan, Faisalabad, Peshawar and Islamabad. Till today, the Uber app was only available in Lahore.

With Tuesday’s move, Uber app’s operations have ceased in Pakistan, and replaced with Careem.

The decision also comes as the brand looks at opportunities for sustainable growth.

Lucky Motors slashes price of Stonic by Rs1.5 million

Meanwhile, Uber’s subsidiary Careem will continue to provide its services in Pakistan, which currently operates in 10 cities including, Karachi, Islamabad, Lahore, Peshawar, Multan, Faisalabad, Abbottabad, Gujranwala, Sialkot and Quetta.

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

Uber, which announced its plans to acquire Careem in 2019 for $3.1 billion, posted a net income of $1.4 billion for the fourth quarter of 2023, which included a $1-billion net tailwind (pre-tax) primarily due to net unrealised gains related to the revaluation of Uber’s equity investments.