In a move that signals the end of an era, Careem has announced that it will shut down its ride-hailing operations in Pakistan on July 18, 2025, ending a decade-long run that helped define the country’s digital mobility ecosystem.
The announcement came directly from Careem CEO Mudassir Sheikha, who took to LinkedIn to share the bittersweet news. He called the decision “incredibly difficult,” citing macroeconomic hurdles, intensifying competition, and a shift in global investment priorities as the key reasons behind the exit.
“It’s the end of an iconic chapter – one built with purpose, grit, and relentless hustle,” Sheikha wrote.
A Decade That Changed How Pakistan Moves
Careem entered Pakistan in 2015, quickly becoming a household name. It was more than just a ride-hailing service — it introduced digital payments, job creation at scale, and new mobility options at a time when public transport was unreliable and largely informal.
In his farewell note, Sheikha reflected on the cultural challenges the team overcame — like societal hesitation around women using ride-hailing apps or commuting with male drivers — and praised the “brilliant and fearless” team that made it happen.
“They didn’t just build a service that millions relied on — they built trust, digital infrastructure, and confidence that shaped Pakistan’s tech ecosystem,” he added.
A Sign of the Times for Pakistan’s Startup Scene
Careem’s decision isn’t isolated. The Pakistani startup ecosystem has been under pressure since 2022, as venture capital funding declined, inflation surged (peaking at 38%), and consumer spending fell.
Several high-profile startups such as Airlift, Swvl, VavaCars, and Truck It In have either scaled back or shut down altogether. This shrinking investment appetite — paired with tough market conditions — has forced even global players to rethink their strategies.
A Global Trend of Retrenchment
Careem’s parent company, Uber, exited Pakistan back in 2022, while continuing to operate in select Middle Eastern and North African markets. Globally, ride-hailing giants like Uber, Lyft, and Grab have increasingly pulled back from low-margin or high-risk markets, focusing instead on delivery, fintech, or consolidation in profitable regions.
With rising operational costs and tighter regulations, emerging markets have become harder to crack — even for the biggest names in tech.
What’s Next for Careem in Pakistan?
While ride-hailing is winding down, Careem Pay and other verticals may still maintain a footprint in the country. The full details of what remains and what exits are expected to be clarified closer to the July 18 shutdown date.
One thing is clear, Careem leaves behind a legacy that helped digitize transport, empower gig workers, and shift cultural norms — paving the way for a new generation of tech ventures in Pakistan.
