ISLAMABAD: Careem, Uber’s ride-hailing arm in the Middle East, will suspend its Pakistan service on July 18, citing economic challenges, rising competition, and capital constraints, ending its core business in a country where it helped pioneer app-based transport nearly a decade ago.
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.
“It is with a heavy heart that I share this update: Careem will suspend its ride-hailing service in Pakistan on July 18,” Co-founder and CEO Mudassir Sheikha said, adding that it was “an incredibly difficult decision”.
“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,” he said, calling it “the end of an iconic chapter”.
