Careem Shuts Down Ride-Hailing Operations in Pakistan

Careem, the popular ride-hailing service owned by Uber, has announced it will be discontinuing its operations in Pakistan effective July 18, 2025. This decision comes after nearly a decade of service since its launch in 2015. The company cites Pakistan’s challenging economic conditions, including high inflation, limited consumer spending, and dwindling investor interest, as key reasons behind the move. Rising operational costs and a lack of sustainable profitability also contributed to the exit, which aligns with a global trend of ride-hailing platforms pulling out of difficult markets.

The ride-hailing sector in Pakistan has grown increasingly competitive, with newer entrants like Russia-backed Yango and Latin American inDrive offering aggressive low-cost models. These players have quickly gained market share, placing additional pressure on Careem’s already strained margins. Uber, which had already withdrawn its own brand from the Pakistani market in 2022, had consolidated operations under Careem, but this latest step marks a complete retreat from the country’s ride-hailing space by the parent company.

With Careem’s exit, both customers and drivers will face a significant shift. The company will continue services until mid-July, after which users will need to explore alternative options such as Yango, inDrive, or traditional taxis. For drivers who relied on the platform as a primary source of income, the transition could prove difficult. Careem’s departure also signals a broader recalibration of digital platforms operating in economically volatile markets, highlighting the fragility of tech-based services in the absence of long-term profitability and investment.