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Uber and Careem Suspends Services in UAE Capital Abu Dhabi

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On Monday, it was reported that Uber Technologies Inc. and its Dubai-based rival Careem have suspended their services in Abu Dhabi, the capital of the United Arab Emirates (UAE), since Saturday.

According to the BBC, Uber gave no explanation as to why it suspended services, but the company said that the decision was a “temporary suspension.” BBC cited The National, an Emirates newspaper, who reported that at least 50 drivers were arrested over the weekend.

Fortune, elaborating further, reported that “many of [Careem’s] drivers were being stopped by authorities in Abu Dhabi, apparently over licensing issues, and as a result had become nervous and were staying off the roads,” according to Christian Eid, VP of marketing and communications at Careem. 

Uber and Careem both said that its operations in Dubai, which is a major tourist and commercial hub in the UAE, were functioning normally.

Uber initially launched its services in Abu Dhabi back in 2013, and has been investing heavily in the area ever since. Saudi Arabia’s Public Investment Fund recently invested $3.5 billion in the company, and last year, Uber laid out a plan for a $250 million regional expansion program in the Middle East.

For more information on Uber, check out these other Zacks articles: “Will Uber Be the Hottest IPO of 2016?,” “Who are Uber’s Biggest Competitors?,” and “Forget Lawsuits, Uber Drivers’ Days are Numbered.”

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