KARACHI: In a major development for Pakistan’s digital ecosystem, the Careem exit from Pakistan has been officially confirmed, with the company announcing the shutdown of its ride-hailing services effective July 18, 2025. The decision brings an end to Careem’s ten-year journey as one of Pakistan’s most recognizable mobility platforms.
The announcement was made by CEO and co-founder Mudassir Sheikha, who described the move as a difficult but necessary step amid mounting economic pressures and shifting global priorities.
Careem Exit from Pakistan Driven by Economic and Competitive Pressures
Explaining the rationale behind the Careem exit from Pakistan, Sheikha cited persistent macroeconomic instability, intensifying market competition, and the challenge of allocating global capital efficiently. He noted that sustaining a safe, reliable, and scalable ride-hailing service in Pakistan had become increasingly difficult under current conditions.
He described the closure as the end of an “iconic chapter,” shaped by resilience and innovation, but one that could no longer justify the level of ongoing investment required.
Careem Exit from Pakistan Does Not Mean a Complete Withdrawal
Despite ending its mobility operations, the Careem exit from Pakistan does not represent a full departure from the country. Careem Technologies, the company’s technology-focused spinout responsible for developing its Everything App, will continue operating from Pakistan.
This platform spans food and grocery delivery, digital payments, and logistics services, and is currently being built by nearly 400 Pakistan-based professionals, including engineers, designers, and product managers. Company leadership confirmed that this workforce will continue to grow following the Careem exit from Pakistan.
Careem Exit from Pakistan Still Leaves Room for Job Creation
Sheikha emphasized that Pakistan remains central to Careem’s technology roadmap even after the Careem exit from Pakistan ride-hailing business. Over 100 new job openings are planned, alongside an expansion of the Falcon and NextGen programs, which focus on training graduates from Pakistani universities to build large-scale, global tech systems.
This continued investment underscores confidence in Pakistan’s tech talent, even as operational challenges persist.
Careem Exit from Pakistan and Transition Support for Users
Following the announcement of the Careem exit from Pakistan, the company confirmed that Careem Care customer support services will remain active until September 18, 2025. This period will allow users to resolve outstanding issues related to rides, payments, or accounts.
Customers holding balances in their Careem Wallet will receive direct guidance on how to withdraw or settle remaining funds, ensuring a structured wind-down of services.
Careem Exit from Pakistan Marks the End of a Transformational Era
Careem’s journey began in 2012 as a web-based corporate car booking service in Dubai before expanding across the Middle East, North Africa, and South Asia. It entered Pakistan in 2015 and quickly reshaped urban mobility, offering digital ride access at scale.
The company was acquired by Uber in 2020 in one of the region’s largest tech deals, yet continued to operate independently. The Careem exit from Pakistan now closes a chapter that played a pivotal role in popularizing app-based mobility nationwide.
Careem Exit from Pakistan Highlights Challenges for Tech Firms
Industry analysts see the Careem exit from Pakistan as a reflection of broader structural challenges faced by digital and gig-economy businesses. Currency depreciation, persistent inflation, interest rate volatility, and regulatory uncertainty have raised operational costs and reduced predictability.
Additionally, companies have struggled with profit repatriation, import restrictions, and inconsistent provincial regulations governing digital platforms and freelance labor.
Careem Exit from Pakistan Raises Concerns After New Budget Measures
Recent fiscal policies have further intensified pressure on tech-driven businesses. The federal budget has introduced an 18 percent e-commerce tax and a 5 percent withholding levy on digital payments to both local and international vendors.
These measures, combined with rising compliance costs, have fueled concerns about the long-term sustainability of digital services, making the Careem exit from Pakistan a potential warning sign for the broader startup and technology ecosystem.
