KARACHI: Careem, the Dubai-based passenger transportation company, has laid off about 150 employees just a few weeks after Uber officially closed its $ 3.1 billion acquisition.
The news was first reported by MENAbytes and has been confirmed with sources within the company. An email sent by Careem CEO Mudassir Sheikha to his employees last week, available with Dawn, says the movement has been made to align with the Super app vision of the tech giant.
In December alone, more than 60 people separated from the company from which Dubai took a clear advantage, while Pakistan’s workers only accounted for a small proportion of that. Amid financial constraints, Careem was also forced to leave Oman and Turkey, where he felt that the regulatory environment was not conducive.
According to LinkedIn, Careem has more than 3,500 employees, of which around 1,100 work in offices throughout Pakistan.
“The changes mean that some of our colleagues now have different or expanded roles in Careem, and others will leave us today since their roles no longer exist,” said the email.
In explaining the reasons for making these decisions, the executive director continues: “Like many technology companies in our growth stage, Careem faces two new realities. First, the expansion of our vision from a regional passenger transport operator to a multi-vertical Super App platform has implications on how we allocate resources and organize ourselves.
Second, our new investors, public markets, expect companies like us to become profitable after almost a decade of great growth. ”
Just two weeks ago, the Director of Finance and Strategy at Careem also announced that he will resign in a LinkedIn post. Even under this chain of command, there have been some shocks as many of the employees were sent to different locations.
“Before the closing of the agreement with Uber, some of Pakistan’s colleagues were transferred to different places, both internally and externally,” a source said. Dawn.
Since its inception, Careem, as its parent company Uber now, had been suffering losses to boost its growth in new geographies. But this has had a considerable cost, since, according to reports, they have burned around $ 75 million to expand and maintain its presence only in Pakistan, its largest market in terms of attractions.
While profitability has been difficult to achieve, Careem has also recently faced stiff competition from new participants in the mobility sector: the airlift and the Egyptian Swvl.