Ride-hailing app Uber ceases operations across Pakistan

Amidst stiff competition from local players, global ride-hailing service Uber has ceased all operations in Pakistan after ending its services in some major cities in 2022, a spokesperson confirmed on Tuesday.

“Our subsidiary brand, Careem, will continue operations offering ride-hailing services across Pakistan,” the spokesperson said.

In 2019, Uber had acquired its rival Careem for USD 3.1 billion. The two companies had said they would continue to operate their respective regional services and independent brands.

Uber had already ceased operations in Karachi, Multan, Faisalabad, Peshawar and Islamabad in 2022.

It was operating in these five cities through Careem and the Uber app in Lahore.

The spokesperson said the company would now focus on growing its Careem app in Pakistan and users on Uber will have to switch to Careem as operations have ceased in Pakistan from Tuesday onwards.

He also said Uber users who had balance in their accounts would be able to reclaim their amounts in due course and be offered free rides on Careem.

Ride-hailing and sharing apps have grown in Pakistan in recent years with other local players entering the market and offering more competitive rates.

This led to the erosion of the stronghold of Careem and Uber in Pakistan. Currently, In-Ride, where users can negotiate for the fare with the driver, has established itself as the most popular service.