Uber-backed ride hailing app Careem is halting its operations in Qatar

Uber-backed thrust hailing work Careem announced connected Tuesday an extremity to its operations successful Qatar.

The astonishment announcement, which went into effect instantly connected Feb. 28, comes conscionable months aft the state became the archetypal Middle Eastern federation to big the World Cup. Careem played a cardinal relation successful Qatar's 2022 World Cup, expanding its fleet successful the state by 50% successful November, portion increasing successful neighboring Saudi Arabia and the UAE.

Careem besides for the archetypal clip offered inter-country round-trip rides from Saudi Arabia and the UAE to Qatar for the shot tournament, which allowed customers to question to matches by car crossed the Gulf. 

Uber, which bought Middle East rival Careem successful 2019 for $3.1 billion, told CNBC it volition beryllium operating "business arsenic usual" successful Qatar pursuing today's announcement. While Uber Technologies has afloat ownership of subsidiary Careem, the 2 companies run independently. Careem's absorption connected its "Super App" differentiates it from the American ride-hailing giant, which is focused connected mobility.

Despite Uber's 2019 acquisition of Careem, the ride-hailing app's concern successful Qatar is not owned by Uber, which was taxable aft the woody to section acquisition laws.

"Uber sought regulatory clearance from definite section contention authorities (including successful Qatar) to get Careem successful 2019. While regulatory approvals successful different countries were obtained, unfortunately, this did not hap successful Qatar," Uber told CNBC.

Careem told CNBC it "will nary longer supply thrust hailing services successful the state arsenic of 28 February 2023." It added that "Careem is arrogant to person served customers and captains successful Qatar and to person contributed to the maturation of the Qatari economy." Captains are the drivers hired by Careem.

Qatar's superior metropolis Doha was the archetypal marketplace Careem expanded into successful 2013, aft its commencement successful the United Arab Emirates. 

Dubai-based Careem, which successful different markets crossed the portion offers its "Super App," initially ran a ride-only level successful Qatar, but launched nutrient transportation successful Qatar past February. The "Super App," which is utilized by customers successful neighboring UAE and Saudi Arabia, offers nutrient delivery, groceries, cleaning services and motorcycle rentals arsenic good arsenic physics payments.

Careem operates successful implicit 80 cities and 10 countries, according to its website. Established successful 2012 successful Dubai by co-founder and CEO Mudassir Sheikha, the institution grew from a Dubai-based thrust sharing institution to a "Super App" platform, utilized crossed the Middle East from Morocco to Pakistan. For galore women successful the Middle East, the institution was played a game-changing role; Careem pushed to prosecute pistillate "captains" successful Saudi Arabia erstwhile it became ineligible for women to thrust successful 2018.

CNBC has reached retired to the Qatari Government for remark connected Careem's announcement.