Careem, one of the pioneering ride-hailing services in Pakistan, announced it will shut down its ride-hailing operations in the country effective July 18, 2025, ending nearly a decade of service in one of its largest markets.

In an official notification to users, Careem expressed gratitude for the support received over the years and acknowledged the difficulty of the decision. The company assured users with balances in their digital wallets that they would soon receive clear instructions on how to reclaim their funds. Customer support under “Careem Care” will remain available until September 18, 2025, to assist with any pending issues.

The decision to exit Pakistan’s ride-hailing market comes amid intense competition from rivals such as Yango and inDrive, which have gained significant market share. Careem, a Dubai-based super app, cited the challenging macroeconomic environment, increasing competition, and global capital allocation priorities as key factors influencing the move.

Mudassir Sheikha, Co-founder and CEO of Careem, described the decision as “incredibly difficult” in a LinkedIn post. He noted that the investment required to maintain a safe and reliable service in Pakistan was no longer justifiable under current conditions.

Careem launched its ride-hailing services in Pakistan in 2016, initially targeting major cities like Karachi, Lahore, and Islamabad, coinciding with the widespread adoption of 3G and 4G connectivity.

While Careem’s ride-hailing operations are winding down, the company’s broader journey in Pakistan continues. Careem Technologies, the spinout developing the “Everything App,” will maintain its presence and continue building from Pakistan for the regional market.