Ride-hailing app Careem has decided to pull out of Oman due to tougher market conditions and regulatory challenges.
A spokesperson of the Dubai-based company, which was taken over by its bigger rival Uber, confirmed to Khaleej Times that the company has decided to discontinue operations from next month.
"Careem decided to discontinue operating in Oman due to the absence of the regulatory factors that provide us with a healthy investment environment. The decision came after an in-depth study and analysis of the market and expected future conditions," the spokesperson said in a statement.
"This decision will allow Careem to focus on high-potential markets and expand services across existing markets. The operations will be closed by February 3, 2020," said the spokesperson.
The company has been facing challenges on the regulatory front in a number of countries. Its owner Uber has been banned in some European countries due to safety and competition issues.
Egypt had also banned Uber and Careem, but later revoked the decision and allowed the two companies to operate in the country.
In March 2019, Uber acquired Careem for $3.1 billion in a competitive region ahead of a hotly anticipated initial public offering. The acquisition was completed at the beginning of this month.
Established in 2012, Careem operates in 120 cities across 15 countries and has created more than one million employment opportunities in the region including Egypt, Jordan, Saudi Arabia and the UAE.
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