Careem has officially announced that it will its ride-hailing operations in Pakistan effective July 18, 2025, marking the end of a significant chapter in one of its key markets.
In a notification issued to its users, Careem expressed deep appreciation for the support it has received throughout the years and admitted the decision was not an easy one. The company confirmed that users with remaining digital wallet balances will be guided on how to reclaim their funds, with Careem Care customer service remaining active until September 18, 2025 for any unresolved concerns.
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The closure comes as Careem struggles to compete with rivals like inDrive and Yango, which have taken a dominant lead in Pakistan’s ride-hailing sector. Despite its long-standing presence, market conditions and increasing competition forced Careem to exit this business segment in the country.
Co-founder and CEO Mudassir Sheikha commented via LinkedIn, stating:
“The challenging macroeconomic environment, intensifying competition, and global capital constraints made it difficult to maintain the required investment in Pakistan to ensure a safe and reliable service. This led the team to make this incredibly difficult decision.”
Careem initially launched in Pakistan in 2016, starting with operations in Karachi, Lahore, and Islamabad, coinciding with the growth of 3G and 4G services in the country. While the ride-hailing service is ending, Careem’s footprint in Pakistan isn’t vanishing completely.
Careem Technologies, which focuses on building the Everything App, will continue to operate from Pakistan, contributing to regional product development and innovation.
