Careem to Suspend Pakistan Service After Nearly 10 Years
Careem suspend Pakistan service Careem, a subsidiary of Uber and a major player in Middle East ride-hailing, will suspend its operations in Pakistan starting July 18, 2025. The company cited intensifying competition, a difficult economic climate, and capital constraints as the reasons behind this decision. Careem has operated in the country for nearly a decade, helping to pioneer app-based transportation in Pakistan.
The company’s CEO and co-founder, Mudassir Sheikha, described the move as a very difficult decision. He explained that Pakistan’s challenging macroeconomic conditions, increasing competition, and the global shift in capital investment made it hard to maintain the service with the high standards customers expected.
Careem’s Legacy in Pakistan
Since launching in 2015, Careem revolutionized the way Pakistanis moved through their cities. The app enabled smoother access to transportation, encouraged digital payment usage, and opened ride-hailing to women both as passengers and drivers. Its early success helped normalize mobile-based services in major cities like Karachi, Lahore, and Islamabad.
Market Pressures and New Competitors
Over the years, the market grew more competitive. New players such as inDrive and Yango, backed by Russian and Latin American investors, entered Pakistan with low-cost ride models. This heightened competition placed additional financial pressure on Careem, which had already been operating in a tight-margin market.
Economic and Startup Challenges
Pakistan’s tech ecosystem has faced multiple setbacks since 2022. Startups have struggled with falling venture capital, soaring inflation—peaking at 38%—and reduced consumer spending. Several high-profile startups such as Swvl, Airlift, and VavaCars have either closed operations or scaled back dramatically.
Globally, similar trends have been observed. Companies like Uber, Grab, and Lyft have exited less profitable markets, scaled down operations, or expanded into services like digital payments and food delivery.
Shift to Super-App Model
While Careem’s ride-hailing service in Pakistan will stop, the company is not pulling out entirely. Its operations team and engineers will continue developing and offering services through its super-app. This includes features like food delivery, grocery services, and mobile payments. Careem confirmed it will maintain hundreds of jobs in Pakistan and remain committed to its broader digital platform.
The company also reassured customers that pending ride balances and wallet issues will be resolved before or by September 18, 2025.
Final Thoughts
Careem’s exit from Pakistan’s ride-hailing sector closes a significant chapter in the country’s digital transport history. However, the brand aims to maintain its presence by expanding digital services under its super-app umbrella. Despite the end of rides, Careem’s investment in Pakistan’s tech future is set to continue.
