By Staff Reporter
KARACHI: Careem, the Dubai-based ride-hailing company, will suspend its operations in Pakistan starting July 18, ending nearly a decade of service in the country, its chief executive said on Wednesday.
The decision, driven by economic headwinds and rising competition, marks a pivot for the company as it shifts focus to its Everything App and other ventures, ensuring its presence in Pakistan endures “in a different role.”
In a LinkedIn post, Mudassir Sheikha, Careem’s CEO and co-founder, described the suspension as “an incredibly difficult decision” and the close of “an iconic chapter, one built with purpose, grit and a ton of relentless hustle.”
He pointed to “the challenging macroeconomic reality, intensifying competition, and global capital allocation” as factors that made it untenable to maintain the investment needed for a safe and reliable ride-hailing service.
“It is with a heavy heart that I share this update: Careem will suspend its ride-hailing service in Pakistan on July 18,” Sheikha wrote. “In the end, the Careem Rides team had to make this tough call.”
Sheikha reflected on the company’s legacy in Pakistan, where it launched in October 2015 with an app, website, and helpline for booking rides. He highlighted achievements like providing safe, on-demand transportation, enabling women to travel with strangers, and normalizing smartphones and digital payments in daily life.
“The challenges were real and formidable,” he said. “But our Pakistan team was brilliant and fearless — bold, determined, and literally on a mission to create millions of jobs for captains across the country.”
The ride-hailing market in Pakistan has grown crowded in recent years, with newer players like Russia-backed Yango and Latin America’s inDrive gaining ground in major cities through low-cost offerings.
Meanwhile, the country’s startup ecosystem has buckled under pressure since 2022, as venture capital evaporated, inflation soared to a record 38% before easing to 3.5%, and consumer spending weakened. The fallout has claimed several startups, including Airlift, Swvl, VavaCars, and Truck It In, which have either shuttered or downsized.
Careem’s retreat echoes a broader trend among global ride-hailing giants. Uber, which exited Pakistan’s ride-hailing market in April 2024, said at the time, “Our subsidiary brand Careem will continue to operate, with the Careem app offering ride-hailing services across Pakistan and earning opportunities for drivers.”
Uber had initially signaled a pullback in 2022 and still operates in parts of the Middle East and North Africa. Elsewhere, firms like Lyft and Grab have also exited unprofitable regions or pivoted to services like deliveries and payments amid rising costs, regulatory hurdles, and slim margins in emerging markets.
Despite the ride-hailing suspension, Careem isn’t abandoning Pakistan. Sheikha emphasized that Careem Technologies, a spinout developing the Everything App, will keep building from the country for the broader region. The app integrates verticals like food and grocery delivery, payments, and more. Nearly 400 employees, spanning engineering and other functions, are working on it, with plans to add over 100 new roles and expand the Falcon/NextGen program, which trains top Pakistani university graduates in scalable systems development.
“While ride-hailing is sunsetting, Careem’s journey in Pakistan continues in a different role,” Sheikha said. “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.”
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