Careem to suspend services effective July 18

Careem, the first ride-hailing app to pave the way for many others in Pakistan, has announced it will suspend its ride-hailing services on July 18, 2025. CEO and Co-Founder Mudassir Sheikha shared the news on LinkedIn, citing "the challenging macroeconomic reality, intensifying competition, and global capital allocation" as key reasons making it difficult to justify further investment to maintain a safe and dependable service.

Careem's decision marks another setback in Pakistan's struggling start-up landscape, which has seen several high-profile closures since 2022, including Airlift, Swvl, Jugnu, and Retailo. Sheikha stressed that Careem's role in Pakistan extended far beyond transport. "It delivered significant public goods — digital infrastructure, trust, regulation, capability, and confidence — that paved the way for countless local and global ventures to take root in Pakistan," he said.

Though ride-hailing services will cease, Careem's presence in Pakistan will continue through Careem Technologies, which is building the "Everything App" from Pakistan for the wider region. Sheikha noted, "Nearly 400 colleagues across all functions (including engineering) are building the app and its ecosystem — food/grocery delivery, payments, and more." He added the company is hiring for over 100 open roles and expanding its Falcon/NextGen programme.

Commenting on future prospects, Sheikha said, "Our commitment to Pakistan remains strong, and I sincerely hope to bring Careem's services back in the future." App users have been informed, with Careem Care promising instructions on how to reclaim existing wallet balances. Dr Noman Said, CEO of SI Global Solutions, called the exit a "wake-up call for Pakistan's digital economy." He added, "Careem's suspension is more than a transport inconvenience — it's a red flag for foreign investors. Urban commuters are losing a trusted service, and female riders are particularly affected. The move highlights deeper systemic issues in Pakistan's tech ecosystem."

Pakistan recorded a 91% year-on-year drop in Foreign Direct Investment (FDI) in April 2025. With tech start-ups shutting down, investor confidence continues to erode. "The message is clear: Pakistan is becoming an increasingly risky destination for tech-driven capital, he added. To reverse this trend, Pakistan must urgently ensure regulatory transparency, offer digital investment incentives, support inclusive mobility solutions — especially for women — and strengthen facilitation via the Special Investment Facilitation Council (SIFC)," Said noted.

A former Careem employee told The Express Tribune, "Careem was a first-mover and made a real impact. From enabling income opportunities to improving female mobility, its contributions went beyond business. The decision reflects changing business realities, and leaders at Uber and Careem made the necessary call." Faryal, a loyal user, said she preferred Careem for its digital payment options and safe, well-trained drivers.

Hiba Shimlawala, another frequent user, shared her disappointment. "I just found out Careem is shutting down — I'm stunned. I've used it daily since 2023 because I don't have a car. I thought they were doing well, especially after acquiring Uber's operations in Pakistan. It always felt safer. I'll have to try Yango or inDrive now, but I'm sad to see Careem go."