The Coronavirus crisis seems to have hit the Uber subsidiary hard as it scales back operations across the region.
Careem’s bus service has been suspended in Egypt, KSA, Jordan and Pakistan, the Uber subsidiary has announced. The move comes less than two year after the launch of the mass transit service by the company. Careem has also slashed 31% of its total workforce in the wake of the Coronavirus crisis that has seen travel and transport among the worst hit industries.
“We delayed this decision as long as possible so that we could exhaust all other means to secure Careem,” Mudassir Sheikha, the company’s co-founder and CEO, wrote in a blog post, adding that the pandemic has seen business fall by 80%.
“We assessed our strategic bets on potential traction in the short to mid-term and our financial ability to pursue them all simultaneously. The outcome was a decision to suspend Careem Bus,” continues Sheikha.“The economics of the mass transportation business have improved but remain challenging, and at this time, we need to accelerate our investments in deliveries.”
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