Careem exits Pakistan ride-hailing market after decade of service

Careem will suspend its ride-hailing operations in Pakistan effective July 18, 2025, CEO Mudassir Sheikha announced in an emotional LinkedIn post, ending a decade-long presence that transformed urban mobility in the country.

“It is with a heavy heart that I share this update,” Sheikha wrote. “This was an incredibly difficult decision. The challenging macroeconomic reality, intensifying competition, and global capital allocation made it hard to justify the investment levels required to deliver a safe and dependable service in Pakistan.”

The Dubai-based company, acquired by Uber in 2020, pioneered app-based transportation in Pakistan since its 2015 launch. Sheikha reflected on early skepticism: “Safe rides on demand? Women traveling with strangers? Smartphones and digital payments for everyday use? The challenges were real and formidable.” He credited Pakistani staff for building “significant public goods: digital infrastructure, trust, regulation, capability, confidence.”

While ride services will sunset, Sheikha emphasized continued commitment: “Pakistan is in Careem’s DNA – our first line of code was written here.” Nearly 400 employees will remain developing the “Everything App” (food/grocery delivery, payments), with plans to hire 100+ more through graduate training programs.

The decision follows Uber’s April 2024 Pakistan exit and mirrors struggles across Pakistan’s startup ecosystem. Sheikha acknowledged the impact: “It’s the end of an iconic chapter – one built with purpose, grit and a ton of relentless hustle.”

Customer wallet balances will be refunded through September 18. Sheikha left open future possibilities: “I sincerely hope to bring Careem’s services back to the country when conditions improve.” The move leaves Pakistani commuters with limited ride-hailing options amid ongoing economic challenges.

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