Careem has announced it will stop its ride-hailing service in Pakistan from July 18, 2025, citing difficult economic conditions. The company’s CEO, Mudassir Sheikha, shared the update on LinkedIn. He said that rising costs, strong competition, and limited investment support made it hard to run the service. Although the service is ending, the company is not leaving Pakistan completely.
Instead, Careem will continue to operate Careem Technologies, a tech-focused arm that is building its “Everything App”. This app includes services like food and grocery delivery, digital payments, and more. Over 400 employees in Pakistan are working on this project. In fact, Careem plans to hire 100 more people and expand its Falcon/NextGen graduate program.
Customers received a message from Careem about the shutdown. The company said Careem Care support will stay available until September 18, 2025, to handle any issues. Users with money left in their Careem Wallet will get updates on how to withdraw their funds.
Careem first launched in 2012 and expanded into Pakistan in 2015, quickly becoming one of the top ride-hailing services. It was acquired by Uber in 2020. But Pakistan’s harsh economic environment, including high inflation, dollar shortages, and strict import rules, has made things worse for tech companies.
Additionally, new government policies are adding pressure. These include a 5% digital levy on online payments and an 18% e-commerce tax. Ride-hailing firms also face unclear rules, changing regulations, and little support for gig workers. All these challenges led Careem to close this chapter in its journey, while starting a new one focused on tech innovation from Pakistan.