According to a statement made public on Monday, the Uber subsidiary and ride-hailing service Careem has abruptly stopped operating in Qatar. Since that Careem has recently increased its services in Qatar to transport soccer fans during the nation’s hosting of the World Cup, this decision seems unexpected.
The specific cause of the abrupt closure has not been made public by the business, but an Uber representative told Reuters that the lack of regulatory approval from the authorities prohibited the sale of Careem’s Qatari operations from concluding.
The decision by Careem to leave Qatar is a major blow for the business’s Middle Eastern expansion goals. After being purchased by Uber for $3.1 billion in 2019, Careem sought to use Uber’s resources and technology to increase its market share in the area.
Customers who rely on Careem’s services in Qatar would also be impacted by the change. But, the business has guaranteed them that all outstanding reservations and subscriptions would be fully repaid.
Careem will continue to invest in markets where it has regulatory approval to operate despite the setback to its long-term expansion strategy in the area.
Careem’s operations in Qatar were abruptly shut down, highlighting the difficulties ride-hailing businesses face when navigating intricate regulatory frameworks in numerous nations. It also emphasises how crucial it is to get regulatory approvals before starting a business in a new area.