Ride-hailing giant Uber is waving goodbye to Pakistan. The company announced it will cease operations nationwide, effectively shutting down its app in the country. This move comes as Uber streamlines its global presence by focusing on its subsidiary, Careem.
In a statement, Uber confirmed the decision to discontinue its app in Pakistan. Careem, acquired by Uber for $3.1 billion in 2019, will take over completely. Careem’s app will now be the go-to platform for booking rides across Pakistan.
This decision aligns with Uber’s broader strategy of streamlining operations across its subsidiaries. Back in October 2022, Uber had already shut down its app in several Pakistani cities, leaving only Lahore.
The exit from Pakistan underscores Uber’s focus on achieving sustainable growth. While specific reasons weren’t provided, consolidating with Careem suggests a more efficient model for Uber in Pakistan.
Careem, now the sole ride-hailing platform under Uber’s umbrella, will continue to operate in Pakistan. It currently serves 10 cities across the country. This consolidation strengthens Careem’s position in the Pakistani market.
It’s worth noting that Careem suspended its food delivery business in Pakistan in June 2022, choosing to focus on its core ride-hailing and delivery services.
While exiting the Pakistani market, Uber did report a strong financial performance in the fourth quarter of 2023. This included a net income of $1.4 billion.
In essence, Uber’s departure from Pakistan signifies its prioritization of global efficiency through consolidation with Careem. This move strengthens Careem’s dominance in the Pakistani ride-hailing market, while Uber focuses on its overall financial health.