Careem, the ride-hailing company that helped change how people in Pakistan get around, has announced it’s ending its ride service in the country. The shutdown will happen on July 18, marking the end of a nearly decade-long run in Pakistan.
Careem, now owned by Uber, said it had to make this tough call because of economic challenges, rising competition, and lack of investment. In short, things have become too difficult to keep the service going.
“A Really Tough Decision,” Says Careem’s CEO
Mudassir Sheikha, Careem’s co-founder and CEO, shared the news on LinkedIn. He said it wasn’t easy for the team to walk away from a country where they’ve been operating since 2015. “This was an incredibly difficult decision,” Sheikha wrote. “The challenging macroeconomic reality, intensifying competition, and global capital allocation made it hard to justify the investment levels required to deliver a safe and dependable service in the country.”
Careem wasn’t just a cab-hailing app in Pakistan. It played a big role in getting people used to digital payments, booking rides through phones, and even making it more normal for women to ride and drive with confidence.
New Players Took Over the Market
In recent years, Careem has been facing heat from new services like Yango (backed by Russia) and inDrive (from Latin America). These companies came in with lower prices, and in a country dealing with high inflation and less spending power, that made a big difference.
This also comes after Uber exited Pakistan in 2022, which shows that even the biggest names are struggling to make ride-hailing work here anymore.
Pakistani Startups Are Also Feeling the Pressure
Since 2022, Pakistan’s entire startup scene has been going through a rough patch. Venture capital has dried up, inflation hit a record 38%, and fewer people have money to spend. A bunch of startups—like Airlift, Swvl, VavaCars, and Truck It In—have either shut down or scaled back big time.
So Careem leaving Pakistan isn’t happening in isolation. It’s part of a bigger trend that shows how hard it’s become to survive in the local tech economy.
It’s a Global Ride-Hailing Reality
Careem isn’t the only one pulling out of tough markets. Around the world, companies like Uber, Lyft, and Grab are quitting countries where business just isn’t profitable. Many are now focusing on delivery services, fintech, or other side ventures because ride-hailing alone doesn’t always bring in enough money—especially in countries with tough regulations and low fares.
What About Other Careem Services?
Right now, Careem has only announced the shutdown of its ride-hailing operations in Pakistan. It’s not yet clear what will happen to its other services like Careem Pay or Careem Food, but the main ride service—the one most people know—is coming to an end.
Careem started its journey in Pakistan back in 2015, and for years, it was the go-to ride app for millions. It offered jobs to thousands of drivers, made commuting easier for families, students, and workers, and brought a tech-driven solution to daily life.
Now, with Careem closing this chapter, it’s the end of an era for Pakistan’s ride-hailing story.
