Decision comes after nearly a decade of operations in Pakistan, during which Careem became a household name in urban transportation
ISLAMABAD: (UrduPoint/Pakistan Point News-June 18th, 2025) In a major development for Pakistan’s digital economy, the popular online taxi service Careem has officially announced it will shut down its ride-hailing operations in Pakistan starting July 18, 2025.
The decision comes after nearly a decade of operations in the country, during which Careem became a household name in urban transportation.
The announcement was made by Careem CEO Mudassir Sheikha in a LinkedIn post, where he expressed deep regret over the closure.
Sheikha stated that despite the company’s commitment to providing a reliable and safe ride-hailing experience, worsening economic conditions in Pakistan, rising operational challenges, intense market competition, and difficulties in attracting global investment have made it unsustainable to continue.
He described the move as an extremely difficult but necessary decision for the company’s future.
The closure of Careem marks the end of an era for Pakistan’s online transportation industry. It also raises questions about the long-term viability of digital startups in the country’s challenging economic landscape. With Careem exiting, the competitive dynamics of the ride-hailing sector in Pakistan are likely to shift significantly, creating opportunities and challenges for remaining and emerging players in the market.
Careem launched its services in Pakistan in 2015, quickly gaining popularity in major cities including Karachi, Lahore, and Islamabad. The company played a pioneering role in transforming urban mobility in Pakistan by offering digital ride-booking solutions, bike rides, and flexible earning opportunities for thousands of drivers, known as "captains."
For many Pakistanis, Careem became synonymous with convenience, especially in a time when online ride-hailing apps were still a novelty.
Over the years, the platform expanded its services and introduced various features that catered to local needs, becoming one of the most widely used ride-sharing platforms in Pakistan.
As the July 18 closure date approaches, Careem is expected to share additional details regarding the winding down process, including what users and captains can expect in terms of refunds, app access, and customer support.
The company has not yet confirmed whether other verticals such as food delivery or logistics services will continue operating in Pakistan after the ride-hailing shutdown.
