Uber is Scaling Back Its Operations In Pakistan
Uber has seen many ups and downs since the pandemic. The good piece of news is that the company is now bouncing back after a fatal crash. Uber in Pakistan is also back with a bang. It is scaling back its operations in the country. A series of efforts from the ride-hailing firm shows that it aims to improve its financial performance.
Uber In Pakistan: Ceasing Operations in 5 of the 6 Cities
The company states that its marquee app is ceasing operations in five of the six cities where Uber was launched and expanded over the years. The company has further told that now the eponymous service will only be available in Lahore in Pakistan. However, Uber insists that it will remain committed to Pakistan and that its subsidiary brand, Careem, will offer services in Karachi, Faisalabad, Multan, Peshawar, and Islamabad. It means that Uber will cease operations in all other cities other than Lahore. It will only provide service in Lahore now. No doubt, this move will nonetheless impact several jobs.
The point worth mentioning here is that Uber will help some driver partners switch over to Careem. However, it did not specify the number of jobs that will get eliminated as part of the decision. The company stated in a blog post:
“We know this is a difficult time for the teams who have worked incredibly hard to build this business over the past few years. We greatly appreciate everyone’s contributions and our priority is to minimize the impact to our employees, drivers, riders, and Hero partners who use the Uber app during this change in Karachi, Islamabad, Faisalabad, Multan, and Peshawar.”
Uber’s sudden decision came as a surprise to local residents. Uber came to Pakistan in early 2016 as part of a $250 million push to expand into the Middle East and North Africa. No doubt, the company faced tough competition from InDrive and Prosus Ventures-backed Bykea in the nation in recent quarters. The company which previously expanded to dozens of nations half a decade ago has slowed its investments in many markets. Even though in India, a key overseas market for the firm, Uber offloaded its Uber Eats delivery business to Zomato, a local rival, and sold its shares in the company recently at an unrealized loss of $707 million. Some Media reports in recent months have claimed that Uber might sell its India ride-hailing business to rival Ola, a claim both firms have denied.
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