Careem to Shut Down Ride-Hailing Operations in Pakistan by July 18, 2025
In a major development for Pakistan’s tech ecosystem, Careem has announced it will be discontinuing its ride-hailing services in the country effective July 18, 2025. The announcement was made by Careem CEO Mudassir Sheikha via a heartfelt LinkedIn post, calling the decision “incredibly difficult” but necessary due to growing economic pressures, fierce competition, and global investment shifts.
“This marks the end of an iconic chapter — one built with purpose, grit, and relentless hustle,” wrote Sheikha, reflecting on Careem’s decade-long journey in Pakistan.
Launched in 2015, Careem played a transformative role in shaping Pakistan’s digital mobility landscape. The platform not only introduced app-based ride-hailing to the masses but also enabled thousands of job opportunities, especially for captains (drivers), and helped normalize digital payments and tech-driven transport solutions in urban centers.
Sheikha also recalled cultural and societal hurdles — particularly skepticism around women commuting with strangers via apps — that Careem overcame with the help of its “brilliant and fearless” Pakistan team.
“They did not just build a service that millions of Pakistanis relied on to move and earn,” he noted. “They laid the foundation for digital infrastructure, regulatory reform, trust in tech platforms, and broader startup confidence.”
The exit mirrors a growing trend of pullbacks from emerging markets by global tech firms. Uber, which acquired Careem’s regional operations in 2020, had already exited Pakistan in 2022. The pressures of high inflation, declining consumer spending, and a sharp drop in venture capital since 2022 have significantly challenged Pakistan’s startup ecosystem. High-profile players like Airlift, Swvl, VavaCars, and Truck It In have either shut down or scaled back.
Globally, ride-hailing giants such as Uber, Lyft, and Grab are also shifting focus toward sustainable markets and diversified services like food delivery, fintech, and logistics, retreating from regions where profitability remains out of reach.
Careem will continue operating in other parts of the Middle East and North Africa, where it sees stronger long-term potential. As Pakistan bids farewell to one of its earliest tech pioneers, the announcement underscores the harsh realities of scaling digital ventures in volatile markets — and the resilience required to adapt.