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A Major Shift in Pakistan’s Tech Mobility Sector
In a surprising yet deeply emotional announcement, Careem, the Middle East-based ride-hailing giant owned by Uber, has revealed it will cease its ride-hailing operations in Pakistan starting July 18, 2025. This marks the end of a transformative decade-long presence in the country’s digital mobility landscape. The news came directly from Careem’s co-founder and CEO Mudassar Sheikha via a heartfelt LinkedIn post. While the ride-hailing services will be suspended, Careem is not entirely pulling out of Pakistan—its tech arm, Careem Technologies, will continue operating from within the country, working on broader digital initiatives like the ambitious “Everything App.”
the Original
Careem, a subsidiary of Uber and a dominant player in the Middle East’s ride-hailing sector, is pulling the plug on its ride-hailing services in Pakistan. The shutdown, scheduled for July 18, 2025, was announced by CEO Mudassar Sheikha on LinkedIn, citing a trio of interconnected challenges: tough macroeconomic conditions, escalating market competition, and dwindling global capital. He acknowledged that sustaining a safe and reliable service in such an environment was no longer financially viable.
Despite this retreat, Sheikha highlighted the profound impact Careem had on Pakistan’s tech and transportation ecosystem. Launched in 2015 amid doubts about digital ride-hailing’s feasibility, Careem managed to not only succeed but also revolutionize mobility and digital adoption across urban centers in Pakistan. From encouraging digital payments to building trust in online services, Careem catalyzed major shifts in consumer behavior.
Crucially, Careem Technologies—a separate entity focused on building a multipurpose digital platform (the “Everything App”)—will remain active in Pakistan. Around 400 employees are currently engaged in building verticals like food and grocery delivery, payment systems, and more. With 100+ open roles and an expanding graduate training program, Careem is doubling down on Pakistan as a technology and talent hub. Sheikha emphasized that the company’s roots remain intertwined with Pakistan, and he holds hope that the ride-hailing service may one day return.
In closing, Sheikha expressed immense gratitude to the team behind Careem’s success in Pakistan, specifically praising their bravery, innovation, and relentless pursuit of progress in the face of systemic and societal challenges.
What Undercode Say:
Careem’s exit from Pakistan’s ride-hailing scene is not merely a business decision—it’s a reflection of the turbulent realities of scaling tech services in volatile economic climates. While many will mourn the loss of a service that provided both convenience to commuters and livelihoods for drivers (“Captains”), the underlying causes tell a larger story about digital resilience in emerging markets.
From an analytical standpoint, Careem’s departure exposes several structural problems. First, Pakistan’s macroeconomic challenges—such as currency devaluation, inflation, and inconsistent policy—create an uncertain climate for tech ventures. Global capital has increasingly become more selective, and companies that once enjoyed high valuations are being forced to reassess their spending strategies. Careem’s shut down of a high-burn service like ride-hailing is consistent with global trends of tech companies consolidating around core, scalable services.
Secondly, competition in the Pakistani ride-hailing sector has intensified. Local startups, Chinese-backed ventures, and alternative transport solutions have gained ground, eating into Careem’s market share. This forces even the giants to reconsider their investments if the return is not aligned with corporate strategy or profitability goals.
That said, Careem’s decision to keep its tech and engineering operations in Pakistan is a calculated pivot. Rather than a complete exit, it’s a strategic retreat from an operationally expensive front. By focusing on Careem Technologies and the Everything App, the company is leveraging Pakistan’s young and educated tech talent—a long-term investment that aligns better with future digital infrastructure plays, such as fintech, logistics, and digital commerce.
Another layer to this story is the social impact. Careem empowered women to travel independently, brought digital payments to millions, and played a role in normalizing tech-driven services. Its departure leaves a gap that will need to be filled, either by local startups or a future re-entry of Careem in a more economically viable time.
From a branding perspective, the tone of Sheikha’s message was spot on. By framing the shutdown as the end of a chapter rather than a failure, and by emphasizing continued commitment through other ventures, Careem preserved trust with the Pakistani public and its own employees.
This isn’t just the end of a ride-hailing service; it’s a reshuffling of the digital deck, and Pakistan’s next wave of innovation may be built by the very people who once drove its Careem cars or engineered its backend systems.
🔍 Fact Checker Results
✅ Claim Verified: Careem officially announced the end of its ride-hailing operations in Pakistan effective July 18, 2025.
✅ Ongoing Operations: Careem Technologies will continue operating in Pakistan, focusing on digital products.
✅ Workforce Status: The company retains nearly 400 employees in Pakistan with plans to expand further.
📊 Prediction
While Careem’s ride-hailing chapter ends, Pakistan’s digital ecosystem may benefit from this pivot. Expect growth in local ride-hailing startups trying to fill the vacuum—especially those offering lower-cost, hyper-local solutions. Careem Technologies’ increased focus in Pakistan suggests that the country might emerge as a regional tech hub within the next five years, particularly in fintech and digital logistics. If macroeconomic conditions stabilize and consumer spending rises, Careem could very well reintroduce its ride-hailing service by the end of the decade, potentially powered by autonomous or electric vehicles.
References:
Reported By: timesofindia.indiatimes.com
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