Careem, one of the pioneers of app-based ride-hailing in Pakistan, is preparing to end its operations in the country on July 18, 2025. After nearly a decade of helping Pakistanis get around with a tap, the company has decided to exit the market — a move driven by shifting business priorities and challenging economic realities.
Mudassir Sheikha, CEO of Careem, announced the news in an emotional LinkedIn post, calling it a painful but necessary decision. He thanked the Pakistan team for their resilience and vision, saying they not only built a service, but helped build the digital foundations of the country.
“It’s not just a shutdown — it’s the close of a chapter that was powered by determination, purpose, and belief in the future,” Sheikha wrote.
How Careem Helped Shape Modern Urban Pakistan
Launched in 2015, Careem quickly became more than just a ride-hailing platform. It became a lifeline for daily commuters, a safe space for women, and a source of income for thousands of drivers across the country.
In the early days, the idea of booking a ride with a stranger on a smartphone was unfamiliar — even uncomfortable for many. But Careem’s team worked tirelessly to win trust and change habits, making it easier and safer for people to move across cities like Karachi, Lahore, and Islamabad.
Why the Exit Now?
According to Sheikha, the decision to leave wasn’t made overnight. Economic headwinds, rising operational costs, and a shrinking pool of global capital have made it harder for tech companies to sustain operations in markets where profit margins are already thin.
Careem’s exit comes in the wake of other major pullouts — including Uber’s 2022 exit from Pakistan — and mirrors a larger trend across emerging markets. Global firms are streamlining, focusing on fewer core markets, and cutting back where returns remain uncertain.
Pakistan’s Startup Struggle Is Real
The decision also reflects broader pressures in Pakistan’s startup ecosystem, which has struggled since 2022. High inflation, dwindling venture funding, and weaker consumer demand have forced several high-profile startups like Airlift, Swvl, and Truck It In to either shut down or pivot drastically.
While Pakistan remains one of the top freelance economies in the world, the harsh economic climate has slowed down broader tech momentum — at least for now.
What’s Next for Careem and Its Users?
While ride-hailing services are ending, Careem hasn’t yet confirmed whether other services like Careem Pay or delivery operations will continue in Pakistan.
What’s certain is that Careem’s impact won’t be forgotten. Over the last decade, it brought convenience, structure, and opportunity to millions — and helped pave the way for the country’s digital future.