In a major blow to Pakistan’s digital economy, ride-hailing giant Careem has announced it will terminate all its ride-hailing operations in Pakistan by July 18, 2025, ending a decade-long presence that reshaped urban mobility across the country.
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Careem, which launched in Pakistan in 2015 and was later acquired by Uber in 2020, cited challenging economic conditions, regulatory complexities, and a rapidly changing competitive landscape as key reasons for the shutdown.
“We explored multiple options to continue operating in Pakistan but the economic environment and growing operational challenges made it unviable,” a company spokesperson said in a statement.
Economic and Competitive Pressures: The decision comes against the backdrop of Pakistan’s worsening macroeconomic indicators, including high inflation, depreciating currency, and a significant drop in venture capital inflows. Since 2022, Pakistan’s startup ecosystem has faced a sharp funding decline, forcing many international firms to reassess their strategies.
Adding to Careem’s woes is the rise of low-cost competitors like inDrive and Yango, which have steadily chipped away at Careem’s market share by offering lower fares and leaner operational models. These platforms have expanded aggressively, particularly in Tier-2 cities where Careem had struggled to remain cost-effective.
Careem’s exit mirrors Uber’s own withdrawal from Pakistan in 2022, a move that signaled growing unease among global tech companies operating in emerging markets.
Impact on Riders and Captains: Careem’s shutdown will affect millions of riders and thousands of captains (drivers) who relied on the platform for income and daily commuting. While the company has promised to notify all stakeholders and process final payments, many drivers are now left uncertain about their livelihoods.
This development marks the end of an era for Pakistan’s urban transport landscape. Careem was instrumental in introducing app-based rides, promoting digital payments, and encouraging female mobility in conservative urban areas.
As Careem pulls out, the vacuum is expected to be quickly filled by agile competitors, but its exit raises serious questions about the sustainability of foreign tech operations in Pakistan’s fragile economic climate.
