Careem to Suspend Ride-Hailing Operations in Pakistan Amid Economic Pressures
Careem, a pioneer of app-based transport in Pakistan and a subsidiary of Uber, will officially cease its ride-hailing operations in the country on July 18, marking the end of nearly a decade of service in one of its key South Asian markets.
The announcement reflects mounting pressures in Pakistan’s digital economy, as tech firms grapple with rising inflation, sluggish consumer demand, and shrinking access to global venture capital. Careem cited “challenging macroeconomic realities,” intensifying competition, and capital constraints as core reasons behind the decision.
Also Read:
Co-founder and CEO Mudassir Sheikha confirmed the move in a public message, describing it as “an incredibly difficult decision” and “the end of an iconic chapter.” He acknowledged the pivotal role Pakistan played in the company’s evolution, saying, “Pakistan is in Careem’s DNA — our first line of code was written here, and the country remains a rich source of innovation and talent for us.”
Though ride-hailing services will be discontinued, Careem is not entirely exiting Pakistan. Its technology arm, Careem Technologies — which is focused on developing the “Everything App” offering services such as food and grocery delivery and digital payments — will continue to operate from Pakistan. The company stated that around 400 employees across engineering and other departments will remain active, supporting regional operations from Pakistan.
In a message sent to its users, Careem expressed gratitude for their loyalty, stating, “We’re deeply thankful for every booking you made with us — from everyday errands to big life moments.” The company assured users that clear instructions would be shared for reclaiming any remaining balance in Careem Wallets, while customer support will remain available until September 18 to handle any unresolved concerns.
Careem’s exit comes two years after Uber halted its own operations in Pakistan in 2022. The ride-hailing market has since seen the rise of newer players, including Russia-backed Yango and Latin America’s inDrive, which have been gaining ground with aggressive pricing models in major Pakistani cities.
The shutdown also highlights broader turbulence in Pakistan’s startup ecosystem. Since 2022, several high-profile ventures such as Airlift, Swvl, VavaCars, and Truck It In have downsized or closed entirely, as the sector endured record inflation — peaking at 38% — and a sharp decline in foreign funding.
Globally, the ride-hailing industry has witnessed similar trends. Companies like Uber, Lyft, and Grab have withdrawn from less profitable markets, streamlined operations, and shifted focus to more viable sectors like logistics, payments, and delivery services.
Careem’s departure underscores the growing challenges tech platforms face in sustaining operations in emerging markets where costs are high, margins thin, and economic volatility persistent.
Read all the Breaking News Live on pakistantimes.com and Get Latest English News & Updates from Pakistan Times. Follow us on Whatsapp channel for more.
