Careem suspends food delivery

Citing difficult economic conditions, the prominent ride-hailing service Careem suspends food delivery service in Pakistan. While doing so the company emphasised that the move will help focus on serving its customers’ needs for ride-hailing and delivery segments instead. It vowed to look to restart the service again whenever the economic conditions become more favourable. Fortunately for Pakistani workforce the company adjusted the redundant employees in its mobility segment. The company insisted that it cannot burn cash on the food delivery service that it started in 2019. It was however not specified that what kind of economic stress the company was in but it seems quite obvious that the precarious economic conditions in Pakistan, particularly the escalating fuel prices, must have put pressure on the company. Careem is not the only company affected by the current economic crunch as app-based bus service Swvl also said that it is pausing its service in Karachi, Lahore Islamabad and Faisalabad due to the global economic downturn though it will continue operating its inter-city buses along with Swvl Business that is its business-to-business segment. Another bus-hailing service, Airlift, shifted the focus of its business from transport to grocery delivery. App-based freight management start-up Truck It has also announced laying-off employees. TW