Uber-backed rideshare service Careem announced that it would be ceasing operations in Qatar, according to a CNBC article published on Tuesday.
The move, which went into effect on Tuesday and came as a surprise to onlookers, came only months after Qatar gained worldwide attention for being the first Middle Eastern country to host the World Cup. Careem was a crucial part of the 2022 event, expanding its national fleet by 50% in November while also expanding to Saudi Arabia and the UAE. During the event, Careem also offered round-trip rides between the three countries, allowing customers to travel to matches by car across the Gulf for the first time.
Uber, which bought Careem for $3.1 billion in 2019, stated that it would continue normal operations in Qatar. Although Uber retains ownership of Careem, the two companies operate independently, with Careem focused on its "Super App" and Uber focused on providing and increasing mobility. Additionally, Careem's business in Qatar is not overseen by Uber due to local acquisition laws. Uber stated that, while it sought regulatory clearance from local competition authorities to fully acquire Careem, it didn't get the desired approval in Qatar.
Careem, whose drivers are known as "captains", stated that it was pleased to have served both customers and company employees in Qatar while also contributing to the country's economy. Doha, the capital city of Qatar, was the first market that Careem expanded into in 2013 after initially launching in the UAE capital of Dubai. The company, which currently operates in over 80 cities and 10 countries, started out only offering ride-hailing services in Qatar but launched food delivery in the country in February 2022. The "Super App", which is used by Saudi Arabian and UAE customers, provides services such as food delivery, groceries, cleaning services, bike rentals, and electronic payments.
Careem was founded in 2012 by CEO Mudassir Sheikha as a Dubai-based rideshare company before transforming into a "Super App" platform used in Middle Eastern countries such as Morocco and Pakistan. For many women in the region, Careem was an important part of the feminism movement by recruiting female drivers in Saudi Arabia once the country began allowing women to drive in 2018.
CNBC is currently awaiting comment from the Qatari government.