Careem bids farewell to Pakistan after nine-year ride

June 18, 2025 (MLN): Careem, the Dubai-based ride-hailing company owned by Uber Technologies Inc., will shut down its operations in Pakistan on July 18, 2025, drawing curtains on nearly a decade of service in one of its largest South Asian markets.

In an official in-app message to users, the company said:

“After many memorable years, Careem services will no longer be operational in Pakistan as of 18th July 2025.”

The company thanked customers for their loyalty, calling the decision a difficult one.

Careem first entered Pakistan in 2016, launching operations in Karachi, Lahore, and Islamabad at a time when 3G and 4G mobile internet were rapidly expanding.

The timing allowed the app-based platform to scale quickly as smartphone penetration soared, making it a go-to choice for urban commuters.

Over the years, Careem became a household name, competing fiercely with Uber and local players, while also expanding into food delivery and courier services.

Following Uber’s decision to wind down its standalone app in Pakistan in April 2024, Careem continued to operate independently.

But with this latest move, Pakistan’s ride-hailing market will now face a major disruption, leaving limited options for consumers.

What Happens to Wallet Balances?

Careem said users with balances in their Careem Wallets will soon receive instructions on how to reclaim their funds.

The company’s customer support wing, Careem Care, will remain available until September 18, 2025, to handle post-exit inquiries and refunds.

Why is Careem exiting Pakistan?

In a heartfelt LinkedIn post, Careem co-founder and CEO Mudassir Sheikha confirmed the exit, calling it “an incredibly difficult decision.”

He cited Pakistan’s macroeconomic headwinds, intensifying competition, and the global capital environment as key reasons that made it unsustainable to maintain the investment levels needed to ensure a safe and reliable service.

Reflecting on Careem’s 2015 launch in the country, Sheikha praised the local team’s grit and purpose, adding that they built more than just a service; they delivered public goods like digital trust, infrastructure, and regulation, which helped unlock Pakistan’s broader tech ecosystem.

He emphasised that while ride-hailing operations are sunsetting, Careem Technologies,  the company’s Everything App spinout, will continue expanding from Pakistan, with over 100 open roles and a strong engineering base.

The platform had previously been hailed as a success story in Pakistan’s tech ecosystem, enabling job opportunities for thousands of captains and gig workers.

The withdrawal also came amid growing uncertainty for ride-hailing models in emerging markets, where rising inflation and currency depreciation have eroded margins for tech-led services.

Careem’s departure leaves a notable gap in Pakistan’s urban mobility ecosystem. While platforms like Yango, InDrive, and Bykea continue to operate, Careem held a distinctive place; it was often seen as a premium, reliable, and relatively safer option, particularly valued by women commuters.

Its exit not only will carry a sense of nostalgia but also raises concerns about whether the existing alternatives can fully match the trust, safety features, and experience Careem offered.

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