Uber, Careem suspend services in Abu Dhabi

Uber (Private:UBER) has suspended services in Abu Dhabi since Saturday and still doesn’t know when it can resume operations. Uber said the move was temporary, and did not explain the reason for suspension of services. The company has been operating in the Emirates since 2013.

The company’s rival in the United Arab Emirates, Careem, also said it had suspended ride-sharing services in the UAE capital, in a post on its Twitter account.

As many as 50 drivers were held at a police station, and one driver was told 70 cars had been impounded.

“Until we have further clarification on the situation, Careem has chose to temporarily limit services in Abu Dhabi to avoid any inconvenience this may cause”, the company said.

“Careem and Uber are allowed to operate according to the regulations, which say that they can work with limousine companies as long as they follow the pricing for limousines”, Mr Al Qamzi said yesterday.

“Uber made a decision to temporarily suspend its services due to unforeseen circumstances”.

“Due to some unforeseen circumstances, we expect potential service interruptions in Abu Dhabi over the next few days”, Careem said.

Uber raised $3.5 billion from Saudi Arabia’s Public Investment Fund and has been investing heavily in the Middle East.

A merger between Chinese ride-hailing firm Didi Chuxing and the China unit of U.S. rival Uber could face its first hiccup after China’s commerce ministry (Mofcom) said it had not received a necessary application to allow the deal to go ahead. Moreover, ride hailing companies can not directly compete with taxi companies in the country. Uber launched a Karachi service on Thursday, offering free rides through the weekend as has become custom for the cash-burning super startup. The company said the massive shortfall was caused by driver subsidies.