Image shows the logo of ride-hailing company Careem on a mobile phone. — Reuters
Careem will suspend its ride-hailing service in Pakistan from July 18, 2025, marking the end of a decade-long chapter that helped shape the country’s digital mobility landscape, the company’s CEO Mudassir Sheikha announced on Wednesday.
In a LinkedIn post, Sheikha said the decision to exit the market was an “incredibly difficult” one, driven by Pakistan’s macroeconomic challenges, stiffening competition, and shifting global capital priorities.
“It’s the end of an iconic chapter – one built with purpose, grit and a ton of relentless hustle,” he wrote.
Careem, which launched its services in Pakistan in 2015, quickly became a pioneer of app-based ride-hailing in the country, creating thousands of jobs and bringing digital payment and mobility solutions into the mainstream.
Sheikha recalled the early days of resistance to the idea of women travelling with strangers and using smartphones for daily commuting — challenges the company overcame through what he described as its “brilliant and fearless” Pakistan team.
“They did not just build a service that millions of Pakistanis relied on to move and earn, they delivered significant public goods: digital infrastructure, trust, regulation, capability, confidence – all of which paved the way for countless local and global digital ventures to take root in Pakistan,” he said.
The decision follows Uber’s exit from Pakistan in 2022.
Pakistan’s startup ecosystem has come under pressure since 2022 as venture funding dried up, inflation surged to a record 38% before falling to 3.5%, and consumption weakened. Startups including Airlift, Swvl, VavaCars and Truck It In have shut down or scaled back.
Globally, firms like Uber, Lyft and Grab have exited unprofitable markets, narrowed focus, or expanded into adjacent services such as deliveries and payments. Rising costs, regulation, and thin margins in emerging markets have added to the strain.
Uber still operates in parts of the Middle East and North Africa but has pulled back where profitability remains elusive.
— With additional input from Reuters
