Careem, the Middle East’s leading ride-hailing service and part of Uber, announced it will cease operations in Pakistan on July 18, ending nearly a decade of app-based transport service in the country. The decision stems from economic difficulties, intensifying competition, and limited access to capital, reflecting broader pressures on Pakistan’s digital economy.
Since launching in 2015, Careem played a pivotal role in popularizing digital payments, app-based ride bookings, and promoting female ridership in Pakistan. However, newer competitors like Russia-backed Yango and Latin America’s inDrive have gained market share by offering low-cost alternatives in major cities.
Careem’s exit follows Uber’s withdrawal from Pakistan in 2022 and highlights the challenges facing Pakistan’s startup ecosystem, which has been hit hard by surging inflation, reduced venture funding, and weakening consumer demand. Several startups, including Airlift, Swvl, and VavaCars, have shut down or scaled back operations amid these headwinds.
Globally, ride-hailing firms such as Uber, Lyft, and Grab have retreated from unprofitable markets, focusing instead on adjacent services like deliveries and payments due to rising costs, regulatory hurdles, and thin margins in emerging economies.
