Uber shuts operations in Pakistan as competition stiffens in the country

Uber has withdrawn from Pakistan due to increasing competition from local competitors, as per a statement from a company spokesperson on Tuesday. Despite Uber's exit, its subsidiary, Careem, will persist in offering ride-hailing services throughout the country. Uber purchased Careem in 2019 for a sum of $3.1 billion, intending to keep regional services and brands separate.

However, in 2022, Uber stopped operations in Karachi, Multan, Faisalabad, Peshawar, and Islamabad, continuing only in Lahore via Careem and the Uber app. The spokesperson announced that Uber's operations in Pakistan have ceased as of Tuesday, with a focus now on expanding the Careem app.

Customers with remaining balances can reclaim them for free rides on Careem. The ride-hailing and sharing apps market in Pakistan has seen growth in recent years, with new local entrants providing more competitive rates which have eroded Careem and Uber's stronghold.

In-Ride, a service that allows users to negotiate fares directly with drivers, has become particularly popular, further affecting Careem and Uber's dominance. Despite Uber's withdrawal, Careem aims to continue providing reliable ride-hailing services to Pakistan.

Uber started its services in Pakistan on March 3, 2016, beginning with Lahore and then expanding to other cities. There are several ride-hailing apps in Pakistan, including Careem, Bykea, Siayara, Airlift, Bolt, SWVL, and InDrive34, offering a range of services, from car rides to motorcycle rides and bus-based commuting solutions, catering to the diverse transportation needs of the Pakistani market.

With inputs from PTI