In a significant development for Pakistan’s digital transport sector, ride-hailing giant Careem has announced it will officially cease its ride-hailing operations in the country effective July 18, 2025.
The company, which has been operating in Pakistan since 2015 and is now owned by Uber, cited the challenging economic conditions, saturated market competition, and limited investment support as key reasons for its exit.
“Pakistan was Careem’s first market in South Asia. It has been an incredible journey of impact and learning,” said Mudassir Sheikha, CEO of Careem, in an official statement. “However, the current climate does not allow us to sustain the scale and quality of service we aspire to deliver.”
A Decade of Digital Mobility Comes to an End
Careem played a pioneering role in digitizing public transport in Pakistan, especially in urban hubs like Karachi, Lahore, and Islamabad. The platform also became known for promoting women drivers and passengers, setting a precedent for safer and more inclusive mobility.
At its peak, Careem operated in over a dozen cities and connected thousands of captains (drivers) with millions of riders.
What Led to the Shutdown?
According to company insiders and industry analysts, the closure stems from several key challenges:
- Macroeconomic instability, including inflation, currency devaluation, and reduced consumer spending.
- Aggressive competition from platforms like inDrive, Yango, and local apps offering lower-cost rides.
- Difficulty attracting sustained investment, especially after Uber scaled back operations globally and withdrew from Pakistan in 2022.
Impact on Riders and Drivers
The shutdown is expected to affect thousands of Careem captains, many of whom relied on the platform as their primary source of income. Users, especially in metropolitan cities, may face temporary service gaps, increased fares from competitors, and limited options until the market stabilizes.
Careem has stated it will assist both customers and captains in the transition, though full details are yet to be shared.
Other Services to Remain Active
While ride-hailing operations will be suspended, Careem’s delivery and corporate business services will continue to function in Pakistan. The company indicated it remains committed to exploring future avenues in the region.
