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.

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After competing with ride-hailing taxi services in Pakistan  ‘Uber Auto’ and ‘Careem Tezz Rickshaw was introduced by ride-hailing companies. Local rickshaw owners was not happy with these services and app. They protested many times against these companies. And now finally local rickshaw union (ARU) in Pakistan launched their own new ride-hailing application “Awami Sawari”. App launch ceremony held at a local hotel.

This new rickshaw application will allow app users to call a rickshaw at any time from any place around the city and will enable to rickshaw drivers to get more rides as compared to driving independently. Awami Sawari is trying to compete against Careem’s Tez Rickshaw App and UberAuto to capture the market.

The Awami Rickshaw Union has already registered around 500 rickshaw drivers, who will encourage their daily routine passengers to use the app. The rickshaw union is also trying to offer android smartphones to rickshaw drivers to make the initiative a success.

According to the ARU President Majeed Ghauri,

“Some of our friends, who have a tech background, helped us in developing the mobile application platform for rickshaw drivers and commuters. The application has been tested among a select group of users and all bugs have been fixed before the launch. We are not against multinational ride-hailing services operating in different cities but we are against the uneven playing field.”

Base tariff for Awami Sawari is Rs. 48 and the cost per kilometer is Rs. 9.  Although the rates of Awami Sawari rickshaw app are not quite competitive as compared to UberAuto or Careem’s Teez rickshaw service.

Competition is going to be quite tough for this newly launched ride-hailing app in the existence of global giants like Uber.

Replying to a question, Union president said; “It is totally a made-in Pakistan app and there is no foreign stakeholder.”  You can download and install the app on your Android phone from Google Play Store.

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Another ride-booking app introduced in Pakistan. The news went viral that on 17 December 2016, Limofied an Australian ride sharing service is going to launch their first app in Lahore.

Now that is big news of the year. The public transport facilities in Pakistan are not up to the mark. They are in pathetic conditions. To solve this problem many ride hailing companies are investing in Pakistan. They can see a good business and a much better profit. It is benefitting people too. It is providing them with ease if travelling and booking rides online.

Limofied aims to provide legal rides online. It will be allowing the passengers to book online. The service can be availed for personal use, going to airports, using cars in a marriage or fir a special event.

Lahore is just the beginning point the company aims to open its branches in other cities of Pakistan too.

Limofied has claimed to be the best one of its kind. It is definitely going to give a solid competition to Uber and Careem, which are the young ride hailing services. It claims to provide better facilities and standards.

It is announced that it will be a 24/7 service.

When firms stand in a competition, always the winners are the customers.

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