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Why Careem Suddenly Halts Operations in Sudan

Tech Gist Africa by Tech Gist Africa
07/05/2019
in Africa, Africa News, News
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Why Careem Suddenly Halts Operations in Sudan

Photocredit: marketsmorning.com

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Less than a year after Careem launched operations in Sudan, they exited the business on the 30th of June, 2019. The ride-hailing company announced its exit in a statement to Reuters, just 3 months after Uber acquired it for a $3.1 billion deal.

In Uber’s IPO filed in March, it was stated that Careem will exit Sudan. Careem also announced the decision to exit Sudan in a Facebook post last month. According to the post, their business operations in Sudan will be suspended on the 30th of June, 2019. It was also written that the decision is in accordance with an agreement with Uber that is subject to regulatory approval.


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Careem ventured into Sudan in September 2018, after the US lifted off the economic sanctions on the country. Sudan, on the other hand, has been facing political instability since a protest that broke out in December 2018. 

A spokesperson said that there are no plans to close down any other market and the Sudan exit will not affect operations anywhere else. Other local ride-hailing platforms like Tirhal still operate in Sudan. Despite the sanction lift, the country is still on the US list of states sponsoring terrorism.

In the face of political crisis, technology invasion is limited. This can be seen as the military rulers block internet access to silence protesters in the country. Citizens are deprived of their rights to access social media and internet sites. The internet shutdown also cripples the digital economy and affects the livelihood of those dependent on digital services such as ride-hailing and mobile banking in Sudan.

 

More on TechGist Africa:

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  • GE Nigeria, UKF to boost Literacy Development with Mobile Library
  • Rwanda’s SafeMotos Rebrands to CanGo and Launches in Congo
  • Google Digital Skills for Africa Launched in Aba, Eastern Nigeria
  • See How Playfre Plans to Help African Artists Monetize their Work

 

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Tech Gist Africa is a new media and technology news platform that focuses on the untold stories of innovative ideas closely connected to technology news from Africa.

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