Careem, a subsidiary of Uber operating in the region, has officially declared that it will discontinue its ride-hailing services in Pakistan starting July 18, 2025. The decision marks the end of nearly a decade of service in the country, as Careem originally launched in Pakistan in 2015 .
CEO Cites Tough Business Conditions
Mudassir Sheikha, co-founder and CEO of Careem, shared on LinkedIn that the move was a “very difficult decision.” He explained that a combination of factors made continued operations unsustainable:
- Macroeconomic pressure in Pakistan
- Escalating competition from lower-cost platforms
- Scarce investment capital available globally
Sheikha emphasized that these challenges hindered the level of investment required to maintain safe, reliable service.
A Legacy of Innovation and Impact
During its time in Pakistan, Careem played a transformative role:
- Pioneered app-based ride bookings and digital payments
- Promoted female riders’ participation, challenging social norms
- Created thousands of captain jobs and strengthened local infrastructure
Sheikha highlighted that Pakistan was instrumental for Careem—not only was the first line of code written there, but the team also built trust, regulation, and capabilities critical to Pakistan’s tech ecosystem .
What Happens After July?
- Careem’s ride-hailing service will officially shut down on July 18, 2025, marking the end of its operations in the Pakistani transport sector.
- Customer support through “Careem Care” will continue until September 18, 2025, ensuring assistance is available for queries, refund requests, and wallet balance settlements during the transition period.
- Users holding funds in their Careem Wallets will be contacted with instructions on how to retrieve or refund these balances.
A “New Chapter”: Staying Through the Super‑App
Despite winding down ride-hailing, Careem is not exiting Pakistan completely. Sheikha assured that the Careem Technologies spin‑out, which is building its “Everything App,” will continue to operate and scale from Pakistan. This team of nearly 400 engineers and professionals focuses on verticals like food/grocery delivery, payments, and other services.
Moreover, the company plans to increase hiring, with over 100 open positions, and expand its Falcon/NextGen graduate training program to groom Pakistani talent in building scalable systems .
Broader Context: Economic and Competitive Pressures
Careem’s withdrawal highlights a larger trend reshaping Pakistan’s tech industry, fueled by economic challenges, reduced investments, and increasing market competition. Since 2022, the country has seen:
- Soaring inflation, reaching nearly 38% before cooling.
- A sharp decline in venture funding, affecting startups like Airlift and Swvl.
- Rising competition from players like Yango and inDrive offering budget-friendly ride options.
Globally, tech players such as Uber, Lyft, and Grab have shut down services where profitability is low—often shifting toward delivery and payment platforms instead .
Final Thoughts
Careem’s decision marks the close of a landmark chapter in Pakistan’s urban mobility history. Yet, through its pivot to a broader super‑app strategy and continued commitment to local engineering, the company signals that while one service is ending, its presence and investment in Pakistan’s digital future is not going away.
