Islamabad (TDI): Careem, the Dubai-based ride-hailing giant backed by Uber, has announced plans to suspend its ride-hailing services in Pakistan on July 18, 2025, marking the end of a nearly decade-long journey that began with its 2015 launch.
Mudassir Sheikha, the co-founder and CEO of Careem, described the decision as “an incredibly difficult one.” He cited several pressures, including a challenging macroeconomic environment, increasing competition, and shifts in global capital allocation. Sheikha emphasized that maintaining the necessary investment levels to provide a safe and reliable service in Pakistan was no longer feasible.
During its tenure in Pakistan, Careem played a pivotal role in revolutionizing urban mobility. It helped popularize app-based booking systems, cashless payments, and created flexible income opportunities for thousands of drivers known as “captains.” Notably, Careem’s “safe rides” initiative empowered many female passengers to travel with confidence in ways previously unavailable.
The decision underscores broader economic strains facing Pakistan’s tech sector. High inflation, depreciating currency, rising fuel costs, and dwindling venture capital have strained profitability.
Additionally, newer competitors like Yango and inDrive, operating with aggressive low-cost models, have captured significant market share.
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While the ride-hailing arm is winding down, Careem remains firmly rooted in Pakistan’s tech ecosystem. Careem Technologies—the engineering and technology arm—will continue to operate from Pakistan, staffing nearly 400 employees across functions.
The company also plans to expand operations with over 100 new job openings and through its Falcon/NextGen program, which recruits top graduates from Pakistani universities for advanced systems training.
“Pakistan is in Careem’s DNA—our first line of code was written here… I sincerely hope to bring Careem’s services back to the country in the future.”
Existing Careem Wallet users will have access to Careem Care support until September 18, 2025, and clear instructions will be provided to reclaim any remaining funds.
This exit aligns with a global trend—companies like Uber and Lyft are scaling back unprofitable operations in emerging markets, planting deeper roots in technology and service verticals instead. Careem’s strategic pivot—from ride-hailing to tech and delivery—reflects a future-focused approach, leveraging Pakistan’s talent and innovation.
Areeba Kanwal is a contributor at The Diplomatic Insight and has passion for International Relations and diplomacy.
