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Ride-hailing Service Careem may become Cheaper Post-Uber Shutdown

Avatar Written by Fizza Akbar · 1 min read>
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Uber has ceased operations in five major cities in Pakistan, including Karachi, Islamabad, Peshawar, Multan, and Faisalabad. It will remain in Lahore and other places for the time being, but there is no word on how long it will stay. This bodes well for Careem fares and services.

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Since 2020, Careem has been a completely owned subsidiary of Uber. When Uber stopped operating in the aforementioned cities, it also declared that all customers and drivers should transfer to Careem as compensation. Uber also paid off any pending driver debts and gave a one-time goodwill payment to them as a goodwill gesture.

Additional Careem Drivers
Needless to say, this will add even more drivers to Careem in these locations, potentially improving fares. More drivers equal ride availability, which equals fewer peak factors and perhaps reduced trip pricing. Peak factors are used when there is a shortage of drivers in your region, but if there is a surplus, it is no longer a concern.

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Furthermore, increased driver availability means you’ll be able to find trips much faster than previously. Drivers will arrive promptly since they will not have to accept your trip from a long distance away.

However, this heavily depends on the number of drivers switching from Uber to Careem. There is currently no information on how many drivers will switch to Careem. Some drivers have already utilized Uber and Careem as alternatives, and some may probably switch to rival applications such as InDriver.

Careem was approached for an official response. What they had to say was as follows:

“Since its inception, the Careem service has been striving to improve. It has nothing to do with Uber’s leaving. We are an independent brand that will keep working hard.”

 

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