Careem shuts down ride-hailing arm in Pakistan amid intensifying competition

The company has operated in Pakistan since 2015 and even held a pioneer position in the country's app-based mobility market.

The company has cited macroeconomic reality, intensifying competition, and global capital allocation as the major challenges faced by it.

"It is with a heavy heart that I share this update: Careem will suspend its ride-hailing service in Pakistan on July 18," Mudassir Sheikha, co-founder and CEO of Careem, wrote on LinkedIn.

He further said, "This was an incredibly difficult decision. 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. In the end, the Careem Rides team had to make this tough call."

Sheikha said: "It’s the end of an iconic chapter - one built with purpose, grit and a ton of relentless hustle."

He said he is hopeful of bringing Careem's service back to Pakistan.

"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," he said.

The decision has been taken years after Uber exited Pakistan in 2022.

Mudassir Sheikha said Careem's journey in Paksitan will continue in a different role.

"Careem Technologies (the spinout building the Everything App) 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)," he said.

He said: "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."