Uber’s subsidiary Careem has announced cutting 31% of its workforce and suspending its bus transportation app due to COVID-19 effects. The cuts represent loss of 536 jobs. COVID-19 has seen the company’s business fall by 80%. The company has therefore decided that its main focus will be on sustainability.
The announcement was made by Careem’s CEO, Mudassir Sheikha via a blog post. The announcement was made shortly after Uber announced suspending its Eats app in 8 markets including Egypt, Saudi Arabia, and the UAE.
“In this new reality, the surest way to secure Careem for the long term is to drive towards self-sustainability within a reasonable time frame,” Mudassir Sheika, CEO, Careem
Suspension of Bus and Building the Careem Super App
Sheikha announced that the company’s main focus will be on sustaining its business by accelerating its services and focusing on building its Super App and accelerating its deliveries services. The Super App would consolidate all of Careem’s current activities, including rides, payments and deliveries.
Sheikha also said that Careem BUS is a much needed service in some key markets and therefore might reappear sometime in the future on Careem’s Super App.
Support for Employees
The company stated that it will provide at least three months of severance pay, one month of equity vesting, and where relevant, extended visa and medical insurance for employees and their families until the end of the year. It will also offer counseling sessions for those who need it.
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