Careem, the Middle Eastern ride-hailing service owned by Uber, has announced that it will suspend its operations in Pakistan starting July 18. The company cites economic challenges, increasing competition, and capital constraints as the primary reasons for its exit. Having pioneered app-based transport in Pakistan nearly a decade ago. Its departure marks the end of an era for ride-hailing in the country, leaving users and drivers uncertain about the future of digital transport services.
The move underscores strain on Pakistan’s digital economy, as tech firms scale back amid high inflation, weak consumer demand, and tighter global capital flows. It ends a nearly decade-long run for Careem, which launched in 2015 and became a dominant player in app-based mobility.
“This was an incredibly difficult decision,” Mudassir Sheikha, co-founder and CEO of Careem, said in a LinkedIn post on Wednesday. “The challenging macroeconomic reality, intensifying competition, and global capital allocation made it hard to justify the investment levels required to deliver a safe and dependable service in the country.”
Uber still operates in parts of the Middle East and North Africa but has pulled back where profitability remains elusive.
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