By In a significant development for Pakistan’s transportation and tech sector, Careem has announced that it will cease its ride-hailing operations in the country effective July 18, 2025. The move marks the end of an era for one of Pakistan’s most influential mobility platforms, which had become synonymous with on-demand transportation since its entry into the market in October 2015.
The announcement was made by Careem’s CEO and co-founder, Mudassir Sheikha, in a heartfelt post on LinkedIn. He described the decision as “incredibly difficult,” citing challenges such as macroeconomic conditions, increased competition, and global investment constraints as key factors behind the shutdown.
“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. “The end of an iconic chapter — one built with purpose, grit and a ton of relentless hustle.”
Impact on the Ride-Hailing Ecosystem
The exit of Careem, which followed Uber’s departure from Pakistan in 2024, leaves a significant void in the country’s ride-hailing landscape. Careem’s presence played a transformative role by mainstreaming app-based transport, empowering women to travel independently, and creating thousands of jobs for drivers, known as “Captains.”
Its departure may lead to:
- Job losses for hundreds of drivers relying on the platform.
- Reduced competition, potentially affecting pricing and service standards.
- New opportunities for local startups or global entrants to fill the gap.
A Shift in Strategy: From Rides to Tech Innovation
Despite discontinuing its core service, Careem is not exiting Pakistan entirely. The company will now focus on developing its “Everything App” — a comprehensive platform integrating food and grocery delivery, payments, and other digital services — through Careem Technologies.
Over 400 employees, including engineers, are currently working on this platform in Pakistan, with the company planning to expand its team. Notably, the Falcon/NextGen program aims to recruit top university graduates to build scalable tech solutions for the region.
Pakistan Remains Central to Careem’s DNA
According to Sheikha, Pakistan has always been integral to Careem’s identity. “Our first line of code was written here,” he said, underscoring the country’s role as a hub for innovation and engineering talent.
The company’s new direction indicates a strategic pivot — from being a ride-hailing giant to becoming a regional tech innovator rooted in Pakistan’s digital ecosystem.
As Careem closes one chapter in its Pakistan story, it opens another — promising continued contributions to the country’s tech and entrepreneurial landscape, albeit in a different form. For now, the ride-hailing sector in Pakistan braces for a new era, shaped by local innovation and new market dynamics.
