End of the Road for a Ride-Hailing Giant
In a move that will reshape urban mobility in Pakistan, Careem has officially announced its decision to end all ride-hailing operations in the country by July 18, 2025. After nearly a decade of service, the decision comes as a major development in the country’s transport and tech space — affecting millions of riders and drivers who have relied on the platform for daily commuting and income.
Careem CEO Mudassir Sheikha confirmed the news, citing “challenging macroeconomic realities, growing competition, and global capital allocation shifts” as key reasons for the company’s exit from Pakistan’s ride-hailing industry.
Careem’s Journey in Pakistan — A Look Back
A Pioneer of App-Based Transport
Launched in 2015, Careem quickly became a game-changer in Pakistan’s transportation sector. At a time when hailing a cab meant standing by the roadside or calling a private driver, Careem brought ease, safety, and digital convenience to millions.
The company not only introduced a reliable ride-hailing service but also helped normalize:
Cashless payments
Female ridership and drivers
Real-time GPS tracking
By November 2022, Careem had completed over 299 million rides in Pakistan, making it the largest contributor to its global one-billion-ride milestone.
Impressive Market Share and Reach
By 2022, Careem had over 50 million registered customers across all operating countries.
In Pakistan, the app had more than 5.5 million downloads and once held a 70% market share.
It became a household name in cities like Karachi, Lahore, Islamabad, and even extended services to smaller towns.
Why Is Careem Leaving the Ride-Hailing Space?
The Rise of Rivals and Economic Challenges
Recent market trends show a decline in Careem’s dominance. As of August 2024, analytics platform Data.ai estimated Careem’s daily active users at around 373,920, a sharp drop compared to its earlier numbers.
Meanwhile, competitors like inDrive have surged ahead, boasting over 2 million users through aggressive expansion and bid-based pricing, which has become popular among price-sensitive customers.
Other contributing factors include:
High inflation and currency depreciation in Pakistan
Shrinking venture capital investments
Increasing operational costs and regulatory challenges
These issues have made it increasingly difficult for global tech firms like Careem to maintain a stronghold in the Pakistani market.
What This Means for Pakistan’s Ride-Hailing Market
A Growing Void in Urban Mobility
Careem’s exit follows Uber’s withdrawal in April 2024, when it shut down its standalone app and merged services under the Careem brand. With both brands now pulling out of ride-hailing, a massive gap has emerged in Pakistan’s app-based transport sector.
While platforms like inDrive, Yango, and Bykea remain, Careem was widely considered the most secure and user-friendly option, especially for female commuters. Its user-focused design, trusted captains, and in-app safety features earned it a loyal customer base.
The exit may leave many users and drivers scrambling to find alternatives — or force them to return to less reliable traditional transport options.
What’s Next for Users and Captains?
Refunds, Support, and Transition
Careem has assured users that wallet balances will be refunded, with clear instructions expected to be shared soon. In addition:
Customer support through Careem Care will remain active until September 18, 2025
Users are encouraged to reach out with any concerns or unresolved issues during this period
Careem’s Future in Pakistan: Not a Full Goodbye
While the ride-hailing business is ending, Careem is not completely shutting down in Pakistan. CEO Mudassir Sheikha confirmed that Careem Technologies, the company’s new tech arm, will continue to operate in the country.
The focus now shifts to developing the “Everything App”, a super app model combining:
Food delivery
Grocery services
Digital payments
Other on-demand services
This pivot aligns with Careem’s broader strategy to grow its tech ecosystem across the Middle East, North Africa, and South Asia regions, with Pakistan remaining an important development hub.
The End of an Era — and a New Beginning?
Careem’s departure from Pakistan’s ride-hailing market marks the end of a transformational chapter. For almost 10 years, Careem helped modernize how Pakistanis travel, work, and engage with digital platforms.
While its exit from ride-hailing leaves a notable gap, the company’s continued presence in the tech and services sector may bring new opportunities for innovation and employment.
For now, both users and captains must adapt to a changing landscape — but Careem’s legacy as a pioneer of digital transportation in Pakistan will not be forgotten.
