Careem has announced it will shut down its ride-hailing operations in Pakistan starting July 18, 2025, bringing an end to nearly a decade of operations in one of its most significant markets. The company shared the update with its users through an official communication, expressing gratitude for their continued support over the years and acknowledging the difficulty of this decision. Users with remaining Careem Wallet balances will receive clear instructions on how to retrieve their funds, and the customer support service, Careem Care, will remain available until September 18, 2025, to handle any unresolved issues.
The exit comes amid increasing market pressure from competing apps such as Yango and inDrive, which have gained notable traction in the country. These competitors have offered strong alternatives in recent years, leading to declining competitiveness for Careem in the ride-hailing segment. Despite its departure from this space in Pakistan, Careem continues to operate in nine other countries and will maintain its broader technological presence in the region.
Mudassir Sheikha, Careem’s Co-founder and CEO, commented on the development through a LinkedIn post, calling it an extremely difficult step driven by macroeconomic realities, growing competition, and global investment priorities. He noted that sustaining a safe and reliable ride-hailing service in Pakistan would have required investments that were no longer feasible under current conditions.
Careem launched ride-hailing in Pakistan in 2016, beginning in major cities like Karachi, Lahore, and Islamabad. The timing aligned with the nationwide adoption of 3G and 4G mobile connectivity, which allowed the platform to scale rapidly. Over the years, Careem became a staple in urban transport for millions across the country, also helping to promote digital payments and new work opportunities for thousands of drivers, referred to as captains.
Despite ending its transport operations, the company has confirmed its ongoing commitment to Pakistan through Careem Technologies. This unit, responsible for building the “Everything App,” will continue to operate out of Pakistan, with nearly 400 team members working across engineering and other functions. The company also plans to expand its Falcon and NextGen programs to train and recruit top university graduates from Pakistan for its regional projects.
Mudassir Sheikha acknowledged the legacy built by the Pakistan team, noting their role in creating public digital infrastructure, consumer trust, and regulatory frameworks that helped pave the way for future digital services. He expressed pride in their achievements and reaffirmed Pakistan’s place in Careem’s growth story. While the ride-hailing chapter is closing, the company’s presence in the country remains strong, with plans to expand operations in engineering and product development roles.
Careem’s exit marks a shift in Pakistan’s ride-hailing ecosystem, but the company remains invested in leveraging local talent and infrastructure for regional digital transformation.
