Careem: an Uber Subsidiary Stops its Operations in Qatar
Careem, a division of Uber Technologies Inc., will stop operating in Qatar on February 28th 2023. The firm informed its clients about their decision in the Gulf Arab nation on February 27th 2023.
The unexpected statement comes 2 months after the World Cup in Qatar. During the World Cup cars with the Careem brand, along with those from Uber and the local taxi company Karwa were part of the tournament’s official preparations to provide transport services to visiting spectators.
About Dubai Careem
A super app with operations in over 100 cities and 12 countries in the Middle East, Africa, and South Asia, Careem initially started as a ride-sharing app in Dubai. Now, it has developed into a full-fledged platform that is expanding throughout the region, providing thousands of individuals with new work opportunities and access to premium services.
In Dubai, Careem presently provides consumers with multiple services, such as ride-hailing, micro-mobility, delivery services and payments. The company even offer services like house cleaning and PCR testing. The goal of Careem has always been to make people’s lives easier, better, and more fantastic through its services. Using the Super App, the founders Mudassir and Magnus are creating a platform that seeks to strengthen the startup environment in Dubai and surrounding areas and make it simpler for individuals to access services that will improve their quality of life. Careem, which had a market value of over US$2 billion in 2018, was acquired by Uber for $3.1 billion in January 2020. Thereafter, the company became a wholly-owned subsidiary of Uber.
Why is Dubai Careem Halting its Operations in Qatar?
The notice from Careem did not provide any explanation as to why it will cease operations. The company didn’t respond to media queries well. Uber did not provide details on the reason Careem stopped operating in Qatar. However, the organisation informed the news organisation Reuters that the sale of Careem’s Qatari operations had not been finalised yet. This is due to the fact that the country’s competition authorities had not given its regulatory permission for the acquisition of Careem. While Uber received regulatory approvals in other nations, the situation was problematic in Qatar.