Global ride hailing firm Uber’s Middle Eastern business Careem, will cease operations in Qatar, according to a report by the global newswire Reuters citing a message sent to customers in the Gulf Arab state on Monday.
As per the report, the announcement comes as a surprise for many as barely two months ago, during the 2022 FIFA world cup in Doha Careem-branded vehicles were part of the tournament’s official plans to transport visiting fans, alongside cars from Uber and local taxi provider Karwa.
“Unfortunately, Careem’s ride hailing operations will no longer operate in Qatar as of February 28, 2023,” the report quoted the message, which also informed customers holding Careem credit that the company would issue a full refund by March 15.
Careem’s message did not explain why it will cease operating, the report said while saying that the local government as well Uber did not immediately respond to its request for comment.
Uber Technologies bought Careem Inc. in 2019 for $3.1 billion, giving the US firm market dominance across the Middle East and Pakistan.
Careem only offered ride-hailing services in Qatar, unlike in larger Middle Eastern markets like the United Arab Emirates where the company offered a more robust slate of services on its application, including food delivery, digital payments and courier services.
Uber’s smart phone application offers ride-hailing services in Qatar and continued to operate normally.