Table of Contents
Careem, the Dubai-based super app known for revolutionizing urban transportation across the Middle East and South Asia, has officially announced that it will discontinue its ride-hailing services in Pakistan starting July 18, 2025. This marks the end of a nine-year chapter for one of the most prominent tech companies in Pakistan’s app-based mobility space.
The announcement came via an official notification to users, in which Careem thanked its customers and captains (drivers) for their years of loyalty and support. The company described the decision as “incredibly difficult,” driven by economic realities and stiff competition in the local market.
Why Is Careem Exiting the Pakistani Ride-Hailing Market?
According to Careem’s Co-founder and CEO, Mudassir Sheikha, several key factors led to this decision:
- Challenging Macroeconomic Conditions: The company cited Pakistan’s economic volatility, including inflation, currency devaluation, and rising operational costs, as a barrier to sustainable investment.
- Intensifying Competition: Newer players such as Yango and inDrive have significantly disrupted the market with competitive pricing and aggressive expansion strategies. These platforms quickly gained traction, especially in urban centers, eroding Careem’s market share.
- Global Capital Allocation Pressure: As part of a broader reassessment of international investments, Careem struggled to justify continued financial commitment to its ride-hailing service in Pakistan, especially when returns were diminishing.
In a LinkedIn post, 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. In the end, the Careem Rides team had to make this tough call.”
Bank Alfalah Launches 0% Markup Installment Plan for HP Laptops
What Happens to Careem Wallet Balances and Customer Support?
Careem assured users that wallet balances will be refunded, with details to be shared soon. According to the company’s statement:
“If you have a remaining balance in your Careem Wallet, we’ll be in touch soon with clear instructions on how to reclaim it.”
To ensure a smooth transition, Careem Care, the company’s customer support division, will remain operational until September 18, 2025. This extended support window is meant to handle any user concerns, pending transactions, or technical issues.
A Look Back: Careem’s Journey in Pakistan
Careem first launched its services in Pakistan in 2016, targeting Karachi, Lahore, and Islamabad—three of the country’s largest and most populous cities. The timing aligned perfectly with the rise of mobile internet, as 3G and 4G connectivity was becoming more widespread.
Over the years, Careem became more than just a ride-hailing platform. It introduced innovations such as:
- In-app payments and wallet systems
- Women drivers (“Captains”) for enhanced inclusivity
- Delivery services and grocery shopping during the COVID-19 pandemic
- Features tailored to local needs, including rickshaw and bike ride options
The platform gained immense popularity and, for a time, became a household name. However, despite a loyal customer base and deep brand penetration, the changing business environment proved too steep a hill to climb.
What’s Next for Careem in Pakistan?
Although the ride-hailing vertical is being shut down, Careem’s presence in Pakistan is not ending entirely. The company clarified that Careem Technologies, a separate entity focused on building the Everything App, will continue to operate from Pakistan.
Careem Technologies is responsible for the broader tech and engineering infrastructure behind the app’s operations in other countries. This means that while you may not be able to book a ride in Pakistan after July 18, engineers, designers, and product managers in cities like Karachi and Lahore will still be working on the future of digital services for the region.
Careem’s Continued Global Footprint
Careem is still active in nine other countries, including the UAE, Saudi Arabia, Egypt, and Jordan. These markets continue to see demand for its full suite of services, which now includes food delivery, payments, logistics, and e-commerce tools under its super app model.
The exit from Pakistan signals a focused approach where Careem is prioritizing markets with stronger economic fundamentals and return on investment.
