After a decade, Careem ends Pakistan ride service this July

Careem, the Middle East-based ride-hailing service owned by Uber, will stop operating in Pakistan on July 18, ending nearly ten years of service. The company pointed to Pakistan’s worsening economy, growing competition, and limited capital as the main reasons. In a post on LinkedIn, CEO Mudassir Sheikha wrote, “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.”

The company  launched in Pakistan in 2015 just as 3G and 4G networks were rolling out. For many, Careem was their first experience with digital payments or app-based mobility. It became the default ride service in cities like Karachi and Lahore, helping normalise solo travel for women in ways the local market hadn’t seen.

But the past few years have been brutal for Pakistan’s tech sector. After inflation peaked at 38% in 2023, consumer demand tanked. FDI fell 91% year-on-year in April 2025. Startup capital dried up. Names like Airlift and Swvl folded or scaled down. Uber exited in 2022. Careem now follows, closing the chapter on Pakistan’s ride-hailing experiment.

The service ending on July 18 is the part still owned by Uber. In 2023, telecom company e& (formerly Etisalat) took a 50.03% stake in Careem’s Super App division, now known as Careem Technologies. That side of the business—focused on deliveries, payments, and other digital services—will continue operating from Pakistan. The ride-hailing arm, however, remained fully under Uber. That’s the piece being shut down.

Careem Technologies is staying active in Pakistan. The team of 400 is working on food delivery, digital payments, logistics, and more. Over 100 new roles are open, including graduates joining via the Falcon/NextGen program. “Pakistan is in Careem’s DNA—our first line of code was written here,” Sheikha said.

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Still, for the average commuter, the news stings. Users were notified of the July 18 cutoff. Refunds and support will run through September 18. The end of ride-hailing sparked concern from everyday users and tech leaders alike. “I shall miss the feeling of safety I felt whenever I travelled in a Careem in Pakistan! No other ride-hailing service succeeded,” commented Youza Khan, a product designer, under Sheikha’s announcement.

Dr. Noman Said, CEO of SI Global, echoed the concern. He called the shutdown “a red flag for foreign investors,” adding that Pakistan’s shrinking startup space and growing digital barriers could drive more players out. “Urban commuters are losing a trusted service, and female riders are particularly affected.”

While Careem winds down, Uber has quietly shifted its strategy. In March 2024, it led a $100 million Series B round in Moove, Nigerian-founded fintech helping drivers in Africa and South Asia finance vehicles. Moove, which expanded to Pakistan and the Middle East, is also working on electric fleet projects.

That shift is telling. Instead of running the platform itself, Uber is now investing in the layer underneath—financing, assets, and infrastructure. Moove even partnered with Swvl early in 2022 to roll out electric buses in MENAP countries, including Pakistan. This suggests Uber isn’t leaving mobility behind, just stepping back from direct operations in tough markets and betting on more durable, capital-efficient plays.

Careem’s exit marks the end of an era when tech promised to reshape urban life. For Pakistan’s ecosystem to move forward, stronger signals are needed—real policy, real funding, and public trust. Careem helped build some of that. Now, it’s handing off the future.