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28-02-23

Uber’s Middle Eastern subsidiary Careem to shut down operations in Qatar

(MENAFN) Careem, a subsidiary of Uber Technologies Inc. that offers ride-hailing services in the Middle East, announced on Monday that it will cease operations in Qatar on Tuesday, February 28, 2023. The company informed its customers in the Gulf Arab state about the decision through a message but did not provide any explanation for the sudden move. Careem’s message also stated that customers holding Careem credit would receive a full refund by March 15.

This announcement came as a surprise, considering that Careem-branded vehicles were part of the official transportation plans for the 2022 World Cup in Qatar, alongside cars from Uber and the local taxi provider Karwa. The move to shut down operations in Qatar could have an impact on transportation services during the upcoming event.

Careem only offered ride-hailing services in Qatar, unlike larger Middle Eastern markets such as the United Arab Emirates, where the company offered a more robust slate of services on its application, including food delivery, digital payments, and courier services.

Careem was acquired by Uber Technologies Inc. in 2019 for $3.1 billion, which gave the US firm market dominance across the Middle East and Pakistan. The acquisition was part of Uber’s strategy to expand its services beyond ride-hailing and into other areas such as food delivery, as well as to compete with rival companies such as Dubai-based ride-hailing company, Careem.
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