Careem to end ride-hailing services in Pakistan, blames ‘challenging macroeconomic reality'
Careem will suspend its ride-hailing service in Pakistan on July 18, its CEO and co-founder Mudassir Sheikha announced on LinkedIn. He said that '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.'
However, Careem is not pulling out of the country completely. Sheikha said Careem's journey in Pakistan continues in a different role.
Careem Technologies - the spinout building the Everything App, a daily-use lifestyle app, will continue to build from Pakistan for the region, he said.
Taxing the digital frontier: Pakistan's bold move to tap e-commerce and online revenues
Nearly 400 colleagues across all functions (including engineering) are building the Everything App and its ecosystem of verticals (food/grocery delivery, payments, and more).
'This presence is only set to grow, with over 100 open roles and the expansion of our Falcon / NextGen program that brings in top graduates from Pakistani universities and gives them hands-on training on building highly scalable systems,' he added.
Sheikha said the decision was a difficult one, and that 'it's the end of an iconic chapter - one built with purpose, grit and a ton of relentless hustle.'
Meanwhile users of the app have recieved a message saying Careem Care will remain available until 18 September 2025, to help with issues.
For those who have remaining balance in their Careem Wallet, the company will be in touch with instructions on how to reclaim it.
Careem was launched in July 2012. It started as a website-based service for corporate car bookings in Dubai and later expanded into a ride-hailing platform across the Middle East, North Africa, and South Asia.
Careem entered Pakistan in 2015, where it became one of the leading ride-hailing services. It was acquired by Uber in a high-profile deal in 2020.
While Sheikha did not delve into details, it is true that currency depreciation, high inflation, and fluctuating interest rates have raised operational costs for firms in Pakistan.
Is the budget changing how government views e-commerce?
Dollar shortages and import restrictions have made it harder for companies to repatriate profits or fund tech infrastructure.
Ride-hailing services in the country have faced inconsistent regulations and licensing hurdles while shifting policies across provinces, unclear taxation rules, and lack of regulatory support for gig-economy models add unpredictability.
What's more, in its latest budget announcement, the government introduced the digital transactions proceeds levy - a 5% withholding levy that will be applied to payments made to domestic and international digital vendors - as well as an 18% e-commerce tax.
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