Careem to End Ride-Hailing Service in Pakistan Next Month
After nearly a decade of operations in Pakistan, Careem has announced that it will suspend its ride-hailing services in the country starting July 18, 2025. Mudassir Sheikha, Careem’s CEO and co-founder, shared the news in a heartfelt LinkedIn post, describing the decision as a “new chapter” for the company. He emphasized that this was an incredibly difficult decision but a necessary one in light of the challenges the company has faced.
The Reason
Sheikha explained that the decision to suspend ride-hailing services was driven by the challenging macroeconomic conditions in Pakistan, increasing competition, and global capital allocation issues.
These factors made it difficult to justify the investment required to continue providing a safe and reliable service in the country. He described the suspension as the “end of an iconic chapter,” one that was built with purpose, grit, and relentless hustle.
The Legacy of Careem in Pakistan
Since its launch in Pakistan in October 2015, Careem had become a vital service for millions of Pakistanis, offering safe rides on demand and providing a platform for individuals to earn income as drivers, known as “captains.” Careem’s presence also contributed to the widespread adoption of smartphones and digital payments in the country, playing a key role in improving digital infrastructure and regulatory frameworks.
Sheikha praised the work of the Careem team in Pakistan, highlighting their boldness, determination, and mission to create millions of jobs for captains across the country. He noted that the company’s efforts had paved the way for many local and international digital ventures to take root in Pakistan.
A New Direction for Careem in Pakistan
While the ride-hailing service is ending, Careem is not leaving Pakistan. The company is transitioning to a new division, Careem Technologies, which will focus on developing its “Everything App” for the region. This app will span multiple verticals, including food delivery, grocery services, payments, and more.
Careem Technologies has nearly 400 employees in Pakistan, and Sheikha assured that the company’s presence will grow further with over 100 open roles and an expanded graduate program. The company remains committed to the local tech ecosystem.
For users with remaining balances in their Careem Wallet, the company will provide instructions for reclaiming funds. Careem Care will remain available until September 18 to assist with any pending issues.
While the ride-hailing service is ending, Careem’s journey in Pakistan is far from over, as it continues to innovate and contribute to the country’s tech landscape.