KARACHI – Careem has officially announced that it will discontinue its ride-hailing operations in Pakistan effective July 18, 2025, marking the end of nearly a decade of service in one of its largest and most active markets. The decision was shared with users via an official notification, where the company thanked customers for their years of trust and support.
“This has been a difficult decision,” Careem said in its statement, acknowledging the loyalty of its Pakistani customer base. The Dubai-based company had been a major player in Pakistan’s mobility landscape since it launched in 2016 in cities like Karachi, Lahore, and Islamabad, quickly becoming a household name.
However, increased market pressure and economic constraints have forced the company to step back. Rival ride-hailing services like Yango and inDrive have captured a large share of the local market, offering competitive prices and wider availability, leaving Careem struggling to keep up.
Refunds and Customer Support Timeline Shared
For users concerned about remaining wallet balances, Careem assured that they would receive detailed instructions soon. “If you have a remaining balance in your Careem Wallet, we’ll be in touch with clear instructions on how to reclaim it,” the company said.
In addition, customer support through Careem Care will remain operational until September 18, 2025, to help users resolve any pending queries, refunds, or complaints. The company stressed that it aims to ensure a smooth transition and closeout process.
Many users took to social media to express disappointment over the news, especially those who had come to rely on the platform for daily commutes in major urban centers. Drivers who had partnered with the app also voiced concerns over lost income and lack of alternate platforms.
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Co-founder and CEO of Careem, Mudassir Sheikha, addressed the shutdown in a heartfelt post on LinkedIn. He explained the move was driven by “challenging macroeconomic realities, intensifying competition, and global capital allocation constraints.”
“It became hard to justify the level of investment needed to ensure a safe and reliable service,” he wrote. “In the end, the Careem Rides team had to make this tough call.”
Despite pulling the plug on its ride-hailing operations, Careem is not entirely exiting Pakistan. Careem Technologies, the company’s tech spin-off building the “Everything App,” will continue operating from Pakistan, focusing on regional technology development. This signals a shift in strategy—from transport services to becoming a technology-driven platform.
Careem still operates in nine other countries, where it offers ride-hailing, food delivery, and digital payments. Its decision to leave Pakistan’s ride-hailing scene is a reminder of how fierce competition and economic volatility can reshape even the most successful tech ventures.
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