Careem to Shut Down Ride-Hailing Services in Pakistan by July 18, 2025 Amid Market Challenges

Careem to Shut Down Ride-Hailing Services in Pakistan by July 18, 2025 Amid Market Challenges

In a significant development for Pakistan’s mobility landscape, Careem has announced the shutdown of its ride-hailing operations across the country, effective July 18, 2025. The decision marks the end of nearly a decade of service in one of the company’s largest and earliest international markets.

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In an official statement to users, Careem thanked its riders and captains for their continued support and acknowledged the difficult nature of the decision. The company confirmed that users with remaining balances in their Careem Wallets would soon receive instructions to reclaim their funds. Careem’s customer support arm, “Careem Care,” will remain active until September 18, 2025, to address any unresolved queries or issues.

“If you have a remaining balance in your Careem Wallet, we’ll be in touch soon with clear instructions on how to reclaim it. Careem Care will remain available until 18th September 2025, to help you with any pending issues or questions you may have,” the company shared in its official communication.

The decision to wind down services comes amid growing pressure from newer competitors such as Yango and inDrive, which have rapidly gained market share in Pakistan. Despite its early entry in 2016 and presence in major cities like Karachi, Lahore, and Islamabad, Careem has struggled to maintain a competitive edge in the evolving ride-hailing sector.

On LinkedIn, Careem Co-founder and CEO Mudassir Sheikha addressed the exit, calling it “an incredibly difficult decision.” He added, “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. In the end, the Careem Rides team had to make this tough call.”

Despite ceasing its ride-hailing services, Careem is not completely exiting Pakistan. The company confirmed that Careem Technologies, the spinout developing the “Everything App,” will continue its operations in the country, focusing on regional tech development and innovation.

Careem’s departure marks a turning point in Pakistan’s ride-hailing space, leaving a legacy of having pioneered app-based transport in the country while also reflecting the shifting dynamics of global tech investments in emerging markets.