Islamabad: American ride-hailing giant Uber has announced the closure of its operations in Pakistan with immediate effect.
Uber Pakistan informed its users through an email message stating, "We have decided to discontinue the Uber app in Pakistan."
A spokesperson for Uber mentioned in their statement that "after the closure of the Uber app, our subsidiary brand Careem will continue to operate, providing ride-hailing services and earning opportunities for drivers across Pakistan."
According to an Uber spokesperson, this decision has been made "in accordance with global business strategy."
The rise of local ride-hailing and sharing apps has caused a significant shift in Pakistan's market. The local players have entered the scene, offering more competitive prices. As a result, both Careem and Uber have faced challenges in maintaining their positions.
What's the alternative
There are are number of alternative ride-hailing apps available in Pakistan. Some of them included: Careem, Bykea, Siayara, Airlift, Bolt, SWVL, and InDrive34. These apps offer a variety of services, from car rides to motorcycle rides and even bus-based commuting solutions, catering to the diverse transportation needs of the Pakistani market.
$3.1 billion deal
In 2019, Uber acquired its rival company "Careem" for $3.1 billion, following which a decision was made for both companies to operate independently under their respective names.
In 2022, Uber Pakistan had announced the cessation of its services in the country's five major cities – Karachi, Islamabad, Peshawar, Multan, and Faisalabad, and until now, the company was only active in Lahore. Following the recent announcement, Uber's app will no longer be operational in Lahore as well.
Careem Rides
The email message sent by Uber on Tuesday stated further that "in light of this decision, Careem Rides Check-In and Sign-Up services will be offered to you. If you do not wish for your details to be shared with Careem, please fill out the form provided by May 3, 2024."
"If you have a cash balance in your Uber Wallet, the Uber team will contact you at the appropriate time for a refund. Until then, a 50% discount is being offered to users on five rides with Careem," the email message added.
Following this decision, most Uber users based in Lahore have received a clear message on the app stating, "Uber is no longer available in Lahore."