In a significant move marking the end of an era in Pakistan’s urban mobility sector, Dubai-based ride-hailing company Careem, a subsidiary of Uber Technologies Inc., has announced it will suspend its ride-hailing services in the country effective July 18, 2025.
The decision comes nearly a decade after Careem entered the Pakistani market and reshaped the way people commuted in major cities.
A Difficult Goodbye to Pakistan
The announcement was made by Careem CEO and co-founder Mudassir Sheikha in a heartfelt LinkedIn post, where he described the decision as “an incredibly difficult” but necessary one.
“It is with a heavy heart that I share this update: Careem will suspend its ride-hailing service in Pakistan on July 18,” wrote Sheikha. “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.”
Calling it “the end of an iconic chapter — one built with purpose, grit and a ton of relentless hustle,” Sheikha highlighted Careem’s role in providing safe rides, empowering women to travel independently, and integrating digital payments and app-based mobility into daily life.
Economic Pressures and Market Shifts
Careem’s departure underscores broader pressures facing Pakistan’s digital economy. High inflation, weakening consumer demand, and a global venture capital slowdown have hit the country’s startup ecosystem hard. Prominent tech ventures such as Airlift, Swvl, and Truck It In have either shut down or significantly scaled back operations.
The ride-hailing sector, once a symbol of digital transformation, has particularly felt the strain. With Uber fully exiting Pakistan in April 2024, Careem’s ride-hailing operations had been the last vestige of international mobility platforms in the country. Now, even that is coming to an end.
Lasting Legacy in Pakistan’s Tech Ecosystem
Despite this exit, Sheikha emphasized that Careem’s presence in Pakistan is far from over. The company’s spinout, Careem Technologies, will continue operating in the country as part of its effort to build an “Everything App” — integrating services such as food and grocery delivery, payments, and more.
“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,” Sheikha affirmed.
Currently, around 400 employees are based in Pakistan, many of them in engineering roles. The company plans to expand its footprint, with over 100 open roles and the continuation of its Falcon/NextGen program, which provides hands-on tech training to top university graduates.
What Happens Next for Users?
In a message sent to users via its app, Careem confirmed:
“After many memorable years, Careem services will no longer be operational in Pakistan as of 18th July 2025.”
To assist users during the transition, Careem Care, the company’s customer support arm, will remain available until September 18, 2025. Customers with funds in their Careem Wallets will be provided with instructions on how to reclaim their balances.
A Nostalgic Farewell for Urban Commuters
Since its launch in October 2015, Careem quickly became a household name across Karachi, Lahore, and Islamabad, especially as 3G/4G internet and smartphones proliferated. It offered a convenient, often safer transport alternative — particularly valued by women commuters — and created thousands of jobs for local drivers, known as “Captains.”
Over the years, Careem not only competed fiercely with Uber but also expanded into delivery services and built what Sheikha called “digital infrastructure, trust, regulation, capability, [and] confidence” that helped fuel Pakistan’s digital economy.
With this move, a void is left in the ride-hailing market, where local and regional players such as Bykea, Yango, and inDrive remain, but questions linger about whether they can offer the same level of reliability, safety, and user experience.
“Our Pakistan team was brilliant and fearless — bold, determined, and literally on a mission to create millions of jobs for captains across the country,” Sheikha wrote in tribute to his colleagues.
As Careem rides into the sunset in Pakistan, it leaves behind a legacy of innovation, opportunity, and transformation — one that helped drive a generation of digital mobility.