Uber Technologies (NYSE:UBER)
Careem, owned and operated by Uber Technologies (NYSE:UBER), has announced that it would stop providing its services in Qatar as of Tuesday, according to a statement that the firm delivered to clients in the Gulf Arab state on Monday. As a result, Uber stock declined.
Two months have passed since the conclusion of the 2018 FIFA World Cup in Qatar, during which Careem-branded vehicles were included in the official plans to transport visiting spectators alongside cars from Uber and the local taxi company Karwa. The news came as a complete surprise.
It was stated in the message that “unfortunately, Careem’s ride-hailing operations would no longer function in Qatar as of February 28, 2023.” Also, clients with Careem credit were notified that the business would offer a full refund to them by March 15 of the following month.
The notice from Careem needed to provide a reason as to why the company would stop its operations. The request for comment that Reuters made still needs to be answered by Careem.
The acquisition of Careem by Uber in 2019 for $3.1 billion provided the US company with market domination across the Middle East and Pakistan.
Uber would not comment on why Careem ceased serving the Qatari market. Still, the company did tell Reuters over WhatsApp that the sale of Careem’s Qatari business had not concluded because competition regulators in Qatar had yet to provide regulatory permission for the deal.
According to the letter sent out by Uber, “Although regulatory permissions in other countries were secured, sadly, this did not happen in Qatar.”
Reuters’ request for comment was not immediately met with a response from the official media office of Qatar.
In Qatar, the only service that Careem provided was ride-hailing, in contrast to more significant markets in the Middle East like the United Arab Emirates, where the firm provides a variety of services through its application, including food delivery, digital payments, and courier services.
On Tuesday, the Uber smartphone application, which provides ride-hailing services in Qatar, continued functioning correctly and was available there.
Featured Image: Pexels @ Max Chen
