Careem ride-hailing in Pakistan will officially come to an end as the Dubai-based ride‑hailing giant ceases its operations effective July 18, 2025, marking the conclusion of a nearly decade-long era of app-based transport services in the country.
Reasons in Careem’s Words
CEO and co-founder Mudassir Sheikha described the decision as “incredibly difficult,” attributing it to:
- A challenging macroeconomic reality in Pakistan,
- Intensifying competition, especially from apps like Yango and inDrive, and
- Global capital allocation constraints hindered continued investment for safe and dependable service.
Careem’s Legacy in Pakistan
Launched in October 2015, Careem pioneered safe and accessible ride‑hailing across major cities. Its impact included:
- Digital payments are becoming mainstream,
- Empowering women riders to travel securely, and
- Generating income opportunities for hundreds of thousands of “captains”
As Sheikha put it:
“They did not just build a service that millions of Pakistanis relied on to move and earn, they delivered significant public goods: digital infrastructure, trust, regulation, capability, confidence…”
What Comes Next?
Although ride‑hailing will wind down, Careem isn’t exiting Pakistan entirely:
- Careem Technologies, the builder of the region’s “Everything App,” will continue to operate from Pakistan, fueled by nearly 400 employees in engineering, product, and other functions
- Over 100 job openings are planned, along with a broader Falcon/NextGen graduate program
- Meanwhile, Careem Care customer support will remain active until September 18, 2025, assisting users with refunds and wallet balances
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Wider Industry Implications
Careem’s exit mirrors Uber’s 2022 Pakistan departure, attributed to similar macroeconomic and capital challenges. Pakistan’s startup landscape has taken a hit—funding dropped, inflation surged to ~38%, and mobility startups like Airlift and Swvl have folded.
Looking Forward
Despite this setback, Careem remains committed to developing its Everything App from its Pakistan base. Co‑founder Sheikha emphasized that “Pakistan is in Careem’s DNA”, and that the innovation and talent emerging from the country fuel its future ambitions
Mudassir Sheikha (Careem CEO):
“It is with a heavy heart… Careem will suspend its ride‑hailing service in Pakistan on July 18… The challenging macroeconomic reality, intensifying competition, and global capital allocation made it hard to justify the investment levels required…”
