Careem, in its announcement to shut down ride-hailing services in Pakistan on July 18, 2025, cited economic challenges, rising competition, and capital constraints as the reasons behind the decision.
“This was an incredibly difficult decision,” Mudassir Sheikha, co-founder and CEO of Careem, said in a LinkedIn post on Wednesday. “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.”
According to market experts, newer entrants such as the Russia-backed Yango, Latin America’s inDrive and and Bykea have expanded their services in major Pakistani cities, offering low-cost models that intensified competition for Careem. Unable to withstand the pressure, Careem announced the cessation of its services in the South Asian country. The decision follows Uber’s exit from Pakistan in 2022.
In particular, inDrive intensified competition for Careem by allowing users to negotiate fares directly with drivers — a feature that proved popular among price-sensitive Pakistani riders. Careem tried to roll out similar features and reintroduce discounts, but by then, a significant portion of its user base had shifted to competitors. Fare differences, along with limited driver availability in some areas, made it difficult for Careem to regain lost ground.
