After revolutionizing the transportation business in Pakistan for nearly a decade, Careem has officially announced it will end its ride-hailing service in the country on July 18, 2025. The company’s co-founder and CEO, Mudassir Sheikha, broke the news in a message, calling the move “the end of an iconic chapter.”
However, this isn’t the end of Careem in Pakistan — it’s a strategic move. The company is now focusing its efforts on building an “Everything App” under a new spinout named Careem Technologies, with Pakistan at the very heart of this digital transformation.
A Difficult Goodbye to Careem – The Ride-Hailing Pioneer
Launched in Pakistan in October 2015, Careem was more than just a ride-booking app — it was a cultural and technological shift. For millions, it offered a first taste of digital convenience, secure mobility, and economic empowerment.
It was particularly groundbreaking for women, providing a safer transport option that defied conservative norms. It created hundreds of thousands of income opportunities for local drivers, known as “Captains,” and helped normalize smartphone usage and digital wallets in everyday life.
Yet, after tackling years of economic turbulence, rising inflation, regulatory challenges, and increased competition, the company has concluded that it is no longer sustainable to continue ride-hailing operations in Pakistan. In his statement, Sheikha cited macroeconomic instability, global capital allocation constraints, and the increasing cost of maintaining a dependable fleet as core reasons behind the exit.
While many expected this announcement to mark a complete exit, Careem surprised the region by revealing that it’s merely shifting gears, not leaving. The company is now concentrating its resources on building a comprehensive super-app, which will cater to the region’s needs through services such as food and grocery delivery, peer-to-peer payments, and bill management.
The transformation will be led by Careem Technologies, a newly established unit that will operate independently and focus on scaling the super-app from Pakistan to the broader Middle East and North Africa (MENA) region.
Currently, nearly 400 employees, including engineers, product developers, and operations specialists, are working out of Pakistan on this project. The company has also announced over 100 new job openings, reinforcing its commitment to making Pakistan the engineering and innovation hub for its next digital chapter.
Sheikha noted that Pakistan is deeply embedded in Careem’s DNA. “The first line of code we ever wrote was in Pakistan,” he said, adding that the country continues to be a fertile ground for digital talent, innovation, and product development.
Careem Users and Captains: What Happens Next?
Careem users in Pakistan will be able to access ride-hailing services up to July 18, 2025. Post that, customer support via Careem Care will remain operational until September 18, ensuring any unresolved complaints, wallet refunds, or account issues are addressed.
For Captains, the decision comes as a tough blow as many relied on the platform as their main source of income, especially in cities like Karachi, Lahore, and Islamabad. While Careem hasn’t announced any severance packages or partnerships yet, the company has hinted that some Captains might find roles or opportunities within the expanding delivery and logistics services of the upcoming super-app.
Additionally, users with remaining balance in their Careem wallets will soon receive detailed instructions on how to withdraw or transfer their funds, as confirmed in a customer communication from the company.
It’s worth noting that Uber had already ceased operations in Pakistan in April 2024, leaving Careem as the last major ride-hailing player. At that time, Uber claimed that Careem would continue to provide ride services under its app — a statement that’s now obsolete with this latest development.
The ride-hailing industry in Pakistan, once buzzing with global interest, is now evolving toward multi-service platforms, echoing models seen in Southeast Asia with players like Grab and Gojek.
A Goodbye That’s Also a Beginning
Careem’s exit from ride-hailing in Pakistan is emotional, symbolic, and strategic; it marks the end of a transformative journey that touched millions of lives, especially in a country that has often lacked public transport infrastructure and digital access.
But it’s also a powerful new beginning.
The company is not packing up and leaving — it is doubling down on Pakistan, turning it into the launchpad for a new regional vision. Through Careem Technologies, the brand will continue to build, innovate, and invest in the country that helped shape its earliest lines of code.
As Sheikha aptly put it: “This may be the end of rides, but not the end of our story in Pakistan.
Read more: Careem Suspends its Food Delivery Services in Pakistan
