According to a statement sent to Gulf Arab clients on Monday, Careem, an Uber subsidiary operating in the Middle East, will cease operations in Qatar on Tuesday.
The unexpected announcement comes two months after the World Cup in Qatar, when cars bearing the Careem brand, as well as those from Uber and the local taxi business Karwa, were part of the tournament’s official transportation arrangements for visiting spectators.
“Unfortunately, Careem’s ride hailing operations will no longer operate in Qatar as of February 28, 2023,” the statement said, adding that clients having Careem credit will receive a full refund by March 15.
Careem’s announcement provided no explanation for why it will cease operations. Careem did not respond quickly to a request for comment from Reuters.
Uber Technologies Inc. paid $3.1 billion for Careem in 2019, giving the American corporation market dominance in the Middle East and Pakistan.
In contrast to larger Middle Eastern countries like the UAE, where the company offered a broader range of services through its app, such as food delivery, digital payments, and courier services, Careem only provided ride-hailing services in Qatar.
Uber provides ride-hailing services in Qatar, and it was still operational as of late Monday.
