Careem to cease operations in Oman

Careem, the homegrown ride-hailing firm now fully owned by Uber Technologies, is pulling out of Oman.

According to reports, the Dubai-based firm is halting operations in the Gulf state at the beginning of next month due to regulatory hurdles.

Responding to a user on Twitter questioning the measure, Careem responded from its official handle as follows: “Careem decided to discontinue operating in Oman due to the absence of the regulatory factors that provide us with a healthy investment environment.”

It is unclear what exact regulatory hurdles did Careem face in Oman at present to warrant such a move.

Careem decided to discontinue operating in Oman due to the absence of the regulatory factors that provide us with a healthy investment environment

— Careem (@careem) January 21, 2020

But Oman has treated both Uber and Careem differently in the past when compared to states like the UAE and Saudi Arabia.

In early 2019, Oman’s Minister of Transport and Communications Dr. Ahmed Al Futais had stated that Uber would be allowed to operate in the Gulf state if it followed regulations governing taxis—something Uber has actively sought not to do in the countries it operates in.

“Services such as Uber and Careem can be implemented in yellow taxis only after meters are installed in the vehicles,” he had told Times of Oman at that time.

Careem initially launched in the capital city of Muscat in May 2017 but had to cease operations when the Government of Oman asked it first to work with licensed taxis. It then resumed operations in October 2018 in partnership with local operator Marhaba Taxi.