Careem suspends ride-hailing operations in Pakistan amid economic headwinds
ISLAMABAD: Careem, the Dubai-based super-app with operations in 70 cities worldwide, will suspend its core ride-hailing service in Pakistan from today, Wednesday, due to worsening economic conditions and stiff market competition, its co-founder announced in a statement on LinkedIn.
Careem launched in Pakistan in 2015 and quickly became a household name for offering a cheap and easy alternative to traditional taxis and rickshaws. The company's app-based service helped popularize cashless payments and gave flexible income opportunities to thousands of drivers, known as 'captains.'
'This was an incredibly difficult decision [to suspend operations]. The 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,' Sheikha said.
In recent years, Pakistan's economic downturn, currency depreciation and rising fuel costs have squeezed ride-hailing margins.
Local players and international competitors, including Uber, which acquired Careem's regional ride-hailing business in 2020, have also intensified competition for drivers and customers in key cities like Karachi, Lahore and Islamabad.
Despite shutting down ride-hailing, Sheikha said Careem remained committed to its technology and engineering presence in Pakistan.
'Careem Technologies ... will continue to build from Pakistan for the region. Nearly 400 colleagues across all functions (including engineering) are building the Everything App and its ecosystem of verticals (food/grocery delivery, payments, and more),' Sheikha said about the all-in-one super app that aims to combine multiple daily services in a single mobile app.
'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.'
Sheikha said Pakistan was in Careem's DNA and its first line of code was written in Pakistan.
'I sincerely hope to bring Careem's services back to the country in the future,' Sheikha said.
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