Careem, a leading online taxi service, has suspended its ride-hailing operations in Pakistan starting July 18, 2025, ending nearly a decade of presence in the country.
CEO Mudassir Sheikha revealed the Careem Pakistan closure in 2025 in a LinkedIn post, citing intense competition and economic challenges.
Sheikha described the decision as “incredibly difficult,” attributing it to “challenging macroeconomic reality, intensifying competition, and global capital allocation,” which made sustaining a reliable service unfeasible. He emphasised, “The Careem Rides team had to make this tough call,” marking the end of a chapter driven by innovation since Careem’s 2015 launch in Pakistan.
Despite the shutdown of Careem’s ride-hailing service, Sheikha expressed optimism about a potential return, stating, “Pakistan is in Careem’s DNA. I sincerely hope to bring Careem’s services back.” The first code for Careem was written in Pakistan, and the country continues to be a hub for talent.
The Pakistan taxi service sector faces growing competition from inDrive and Yango, alongside economic pressures like 22% inflation in 2024. Careem’s exit, affecting 15% of Pakistan’s ride-hailing market, may boost competitors. Previous layoffs in 2023 signalled challenges. The economic challenges Careem faced highlight broader investment hurdles.
