A ride app backed by Uber known as Careem, based in Dubai, is halting its processes in Qatar

March 01, 2023: -Uber-backed ride-hailing service Careem announced an end to its operations in Qatar on Tuesday.

The surprise statement, which went into effect immediately on February 28, comes just months following the country being the first Middle Eastern nation to manage the World Cup. Careem played a crucial role in Qatar’s 2022 World Cup, growing its fleet by 50% in November while growing in neighbouring Saudi Arabia and the UAE.

Careem also, for the initial time, showed inter-country rides of both ways from Saudi Arabia and the UAE to Qatar for the soccer game, which permitted customers to travel to matches by car across the Gulf.

Uber, bringing Middle East rival Careem in 2019 for $3.1 billion, said it will operate “business as usual” in Qatar following today’s announcement. Careem’s “Super App” aim differentiates it from the American ride-hailing company, which focuses on mobility.

 While Uber Technologies wholly owns its subsidiary Careem, the two companies operate independently.

Although Uber’s 2019 Careem acquisition, the ride-hailing app’s business in Qatar is not directed by Uber, which was subject to local acquisition laws after the deal.

“Uber sought regulatory clarity from certain local competition authorities acquiring Careem in 2019. While regulatory approvals in different countries were obtained, this did not happen in Qatar,” Uber said.

Careem said it “will no longer provide ride-hailing services in the country as of February 28 2023.” It added, “Careem is proud to have served customers and captains in Qatar and contributed to the Qatari economy’s growth.” Captains are the drivers hired by Careem.

Qatar’s capital city Doha was the initial market Careem expanded into in 2013, following its start in the United Arab Emirates.

Careem is a Dubai-based carrier, which in different markets all over the area offers its “Super App,” starting ran a ride-only platform in Qatar but launched food delivery in Qatar in the previous February. The “Super App,” used by customers in neighbouring UAE and Saudi Arabia, offers food delivery, cleaning services, bike rentals, and electronic payments.