Careem to suspend services effective July 18
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Careem, the first ride-hailing app to pave the way for many others in Pakistan, has announced it will suspend its ride-hailing services on July 18, 2025. CEO and Co-Founder Mudassir Sheikha shared the news on LinkedIn, citing "the challenging macroeconomic reality, intensifying competition, and global capital allocation" as key reasons making it difficult to justify further investment to maintain a safe and dependable service.
Careem's decision marks another setback in Pakistan's struggling start-up landscape, which has seen several high-profile closures since 2022, including Airlift, Swvl, Jugnu, and Retailo. Sheikha stressed that Careem's role in Pakistan extended far beyond transport. "It delivered significant public goods — digital infrastructure, trust, regulation, capability, and confidence — that paved the way for countless local and global ventures to take root in Pakistan," he said.
Though ride-hailing services will cease, Careem's presence in Pakistan will continue through Careem Technologies, which is building the "Everything App" from Pakistan for the wider region. Sheikha noted, "Nearly 400 colleagues across all functions (including engineering) are building the app and its ecosystem — food/grocery delivery, payments, and more." He added the company is hiring for over 100 open roles and expanding its Falcon/NextGen programme.
Commenting on future prospects, Sheikha said, "Our commitment to Pakistan remains strong, and I sincerely hope to bring Careem's services back in the future." App users have been informed, with Careem Care promising instructions on how to reclaim existing wallet balances. Dr Noman Said, CEO of SI Global Solutions, called the exit a "wake-up call for Pakistan's digital economy." He added, "Careem's suspension is more than a transport inconvenience — it's a red flag for foreign investors. Urban commuters are losing a trusted service, and female riders are particularly affected. The move highlights deeper systemic issues in Pakistan's tech ecosystem."
Pakistan recorded a 91% year-on-year drop in Foreign Direct Investment (FDI) in April 2025. With tech start-ups shutting down, investor confidence continues to erode. "The message is clear: Pakistan is becoming an increasingly risky destination for tech-driven capital, he added. To reverse this trend, Pakistan must urgently ensure regulatory transparency, offer digital investment incentives, support inclusive mobility solutions — especially for women — and strengthen facilitation via the Special Investment Facilitation Council (SIFC)," Said noted.
A former Careem employee told The Express Tribune, "Careem was a first-mover and made a real impact. From enabling income opportunities to improving female mobility, its contributions went beyond business. The decision reflects changing business realities, and leaders at Uber and Careem made the necessary call." Faryal, a loyal user, said she preferred Careem for its digital payment options and safe, well-trained drivers.
Hiba Shimlawala, another frequent user, shared her disappointment. "I just found out Careem is shutting down — I'm stunned. I've used it daily since 2023 because I don't have a car. I thought they were doing well, especially after acquiring Uber's operations in Pakistan. It always felt safer. I'll have to try Yango or inDrive now, but I'm sad to see Careem go."
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Business Recorder
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Careem to suspend decade-old Pakistan service
KARACHI: After more than a decade of operations, Careem announced on Wednesday that it will shut down its ride-hailing services in Pakistan, effective July 18. Mudassir Sheikha, CEO of Careem, announced the decision via a post on the professional networking platform LinkedIn. 'It is with a heavy heart that I share this update: Careem will suspend its ride-hailing service in Pakistan on July 18.' Sheikha described it as an incredibly difficult decision, citing a combination of factors- 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 Pakistan. 'In the end, the Careem Rides team had to make this tough call.' Careem, a multinational ride-hailing company founded in 2012, entered the Pakistani market in October 2015. In 2019, it was acquired by Uber for $3.1 billion, solidifying its position as the largest unicorn in the Middle East and opening new avenues for startups across the region. Sheikha said that despite numerous challenges, Careem's Pakistan team remained brilliant and fearless-bold, determined, and driven by a mission to create millions of job opportunities for captains across the country. 'They (Careem Team) did not just build a service that millions of Pakistanis relied on to move and earn, they delivered significant public goods: digital infrastructure, trust, regulation, capability, confidence - all of which paved the way for countless local and global digital ventures to take root in Pakistan', he added. He said that while ride-hailing is sunsetting, Careem's journey in Pakistan continues in a different role. Careem Technologies (the spinout building the Everything App) will continue to build from Pakistan for the region. He mentioned that 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. 'Pakistan is in Careem's DNA-our first line of code was written here, and the country remains a rich source of innovation and talent for us. Our commitment to Pakistan remains strong and I sincerely hope to bring Careem's services back to the country in the future', CEO Careem said. He also paid tribute to those heroes who built Careem in Pakistan under the bold leadership of Junaid Iqbal. Setup in 2012, Careem operates in over 70 cities across 10 countries, from Morocco to Pakistan and creating earnings for over 2.5 million Captains. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Express Tribune
Careem to suspend services effective July 18
Listen to article Careem, the first ride-hailing app to pave the way for many others in Pakistan, has announced it will suspend its ride-hailing services on July 18, 2025. CEO and Co-Founder Mudassir Sheikha shared the news on LinkedIn, citing "the challenging macroeconomic reality, intensifying competition, and global capital allocation" as key reasons making it difficult to justify further investment to maintain a safe and dependable service. Careem's decision marks another setback in Pakistan's struggling start-up landscape, which has seen several high-profile closures since 2022, including Airlift, Swvl, Jugnu, and Retailo. Sheikha stressed that Careem's role in Pakistan extended far beyond transport. "It delivered significant public goods — digital infrastructure, trust, regulation, capability, and confidence — that paved the way for countless local and global ventures to take root in Pakistan," he said. Though ride-hailing services will cease, Careem's presence in Pakistan will continue through Careem Technologies, which is building the "Everything App" from Pakistan for the wider region. Sheikha noted, "Nearly 400 colleagues across all functions (including engineering) are building the app and its ecosystem — food/grocery delivery, payments, and more." He added the company is hiring for over 100 open roles and expanding its Falcon/NextGen programme. Commenting on future prospects, Sheikha said, "Our commitment to Pakistan remains strong, and I sincerely hope to bring Careem's services back in the future." App users have been informed, with Careem Care promising instructions on how to reclaim existing wallet balances. Dr Noman Said, CEO of SI Global Solutions, called the exit a "wake-up call for Pakistan's digital economy." He added, "Careem's suspension is more than a transport inconvenience — it's a red flag for foreign investors. Urban commuters are losing a trusted service, and female riders are particularly affected. The move highlights deeper systemic issues in Pakistan's tech ecosystem." Pakistan recorded a 91% year-on-year drop in Foreign Direct Investment (FDI) in April 2025. With tech start-ups shutting down, investor confidence continues to erode. "The message is clear: Pakistan is becoming an increasingly risky destination for tech-driven capital, he added. To reverse this trend, Pakistan must urgently ensure regulatory transparency, offer digital investment incentives, support inclusive mobility solutions — especially for women — and strengthen facilitation via the Special Investment Facilitation Council (SIFC)," Said noted. A former Careem employee told The Express Tribune, "Careem was a first-mover and made a real impact. From enabling income opportunities to improving female mobility, its contributions went beyond business. The decision reflects changing business realities, and leaders at Uber and Careem made the necessary call." Faryal, a loyal user, said she preferred Careem for its digital payment options and safe, well-trained drivers. Hiba Shimlawala, another frequent user, shared her disappointment. "I just found out Careem is shutting down — I'm stunned. I've used it daily since 2023 because I don't have a car. I thought they were doing well, especially after acquiring Uber's operations in Pakistan. It always felt safer. I'll have to try Yango or inDrive now, but I'm sad to see Careem go."
Business Recorder
2 days ago
- Business Recorder
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.
