KARACHI – In a long-anticipated move, Careem has officially suspended its ride-hailing operations across Pakistan, notifying users via email and push notifications on Wednesday. The decision, which takes effect from July 18, marks the end of an era for the Dubai-based company that began operations in Pakistan in 2015.
Social media was abuzz with surprise and disappointment from users, particularly women, who viewed Careem as a safer ride option. However, tech experts say the exit had been expected. “This is just a formal confirmation,” said Mutaher Khan, co-founder of Data Darbar, noting the company’s declining relevance and slump in ride volume globally.
Acquired by Uber in 2020 for \$3.1 billion, Careem struggled post-acquisition. Tech analyst Habibullah Khan highlighted the company’s failed payment and food delivery ventures, mass layoffs in 2020, and the erosion of customer trust as turning points in its downfall.
Between 2015 and 2019, Careem logged 236 million rides in Pakistan, peaking at over 100 million in its final pre-Covid year. Post-2020, however, rides fell drastically.
The rise of cheaper competitors like inDrive and Yango further squeezed Careem’s market share. Journalist Afia Salam noted the price-sensitive market likely made Careem’s model unsustainable, despite its superior fleet and service quality.
In a statement, Careem attributed its exit to “tough market conditions” but affirmed its continued presence in Pakistan as a tech and talent hub to support its regional Super App operations. The company is now focused on services like food delivery and digital payments in key markets, particularly the UAE, bolstered by a \$400 million investment from UAE’s telecom giant e& Group.
Story by Aimen Siddiqui
