Careem, a leading ride-hailing service, will suspend its operations in Pakistan on July 18, 2025, its Co-founder and CEO Mudassir Sheikha announced in a LinkedIn post.
Sheikha stated that the suspension of the ride-hailing service was a difficult decision. “The challenging macroeconomic reality, intensifying competition, and global capital allocation made it hard to justify the investment levels required to deliver a safe and dependable service in the country. In the end, the Careem Rides team had to make this tough call,” Sheikha wrote in his post.
While the ride-hailing service will be suspended, Sheikha assured that Careem’s journey in Pakistan would continue in a different capacity. Careem Technologies, the spin-off focused on building the “Everything App,” will continue to operate from Pakistan, with nearly 400 employees working on various functions, including engineering.
Sheikha also mentioned that Careem would expand its services in food and grocery delivery, payments, and more.
He reflected on the company’s journey in Pakistan, recalling how the launch of Careem in 2015 was met with skepticism. “Safe rides on demand? Women traveling with strangers? Smartphones and digital payments for everyday use? The challenges were real and formidable,” he said.
Despite these challenges, Sheikha acknowledged the dedication and determination of the Pakistan team, who successfully built a service relied upon by millions, and delivered vital public goods including digital infrastructure, trust, regulation, and confidence, which paved the way for other digital ventures in Pakistan.
Careem’s CEO emphasised that Pakistan remains a key part of Careem’s operations, noting that the first line of code was written in Pakistan. The company’s commitment to the country remains strong, and Sheikha expressed hope of bringing the company’s services back in the future.
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.
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.
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.
Careem was launched in July 2012 as a website-based service for corporate car bookings in Dubai. It later expanded into a ride-hailing platform across the Middle East, North Africa, and South Asia.
