ISLAMABAD: Careem, the Dubai-based super-app operating in 70 cities globally, will discontinue its primary ride-hailing services in Pakistan starting today (Wednesday). The decision comes as a result of the country’s struggling economy, rising operational costs, and fierce competition in the market, according to a statement by the company’s co-founder on LinkedIn.
Careem’s Journey in Pakistan
Careem entered Pakistan in 2015 and quickly gained popularity as a convenient and affordable alternative to traditional taxis and auto-rickshaws. The app-based service revolutionized urban mobility by introducing cashless transactions and providing flexible earning opportunities for thousands of drivers, referred to as “captains.” Over the years, Careem became a trusted name in Pakistan’s ride-hailing industry, contributing to the growth of the digital economy.
Reasons Behind the Suspension
In his statement, Careem’s co-founder explained that the decision to suspend operations was not easy. “The current economic instability, increasing competition, and global financial constraints have made it difficult to sustain the level of investment needed to maintain a reliable and safe service in Pakistan,” he said.
Pakistan’s ongoing economic crisis, marked by currency devaluation, soaring fuel prices, and inflation, has significantly impacted ride-hailing businesses. Additionally, competition has intensified with local players and international rivals like Uber—which acquired Careem’s regional ride-hailing operations in 2020—vying for dominance in major cities such as Karachi, Lahore, and Islamabad.
Careem’s Continued Presence in Pakistan
Despite withdrawing its ride-hailing services, Careem will maintain its technology and engineering operations in the country. The company’s tech division, Careem Technologies, will continue developing its “Everything App”—an all-in-one platform offering food and grocery delivery, digital payments, and other services.
“Our team of nearly 400 professionals, including engineers, remains dedicated to building innovative solutions from Pakistan for the wider region,” the co-founder stated. He also highlighted plans to expand Careem’s talent pool, with over 100 job openings and the growth of its Falcon/NextGen Program, which recruits top graduates from Pakistani universities and trains them in building scalable digital systems.
The co-founder emphasized Pakistan’s importance to Careem’s legacy, noting that the company’s first line of code was written in the country. “Pakistan is deeply embedded in Careem’s DNA, and I sincerely hope we can reintroduce our services here in the future,” he added.
While the suspension of ride-hailing marks the end of an era, Careem’s ongoing tech investments suggest a potential comeback when economic conditions improve. For now, Pakistani users will have to rely on alternative platforms for their transportation needs, such as indrive,yango and bikea.
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