Careem to Suspend Pakistan Service After Nearly a Decade Amid Economic Challenges
Careem, the ride-hailing service owned by Uber in the Middle East, announced it will suspend its Pakistan operations on July 18, ending a near 10-year presence in the country due to economic difficulties, rising competition, and capital constraints.
Launched in 2015, Careem was a pioneer in app-based transport in Pakistan, helping to popularize digital payments, app bookings, and increasing female ridership. However, the company said the tough macroeconomic environment, intensified competition, and challenges in global capital allocation made continued investment unsustainable.
Newer competitors such as Russia-backed Yango and Latin America’s inDrive have expanded aggressively in Pakistan’s major cities with low-cost ride models. This follows Uber’s exit from Pakistan in 2022, signaling mounting pressure on the country’s digital economy.
Pakistan’s startup ecosystem has struggled since 2022 amid drying venture capital, soaring inflation which peaked at 38% before easing to 3.5%, and weakening consumer demand. Several startups like Airlift, Swvl, VavaCars, and Truck It In have shut down or downsized.
Globally, ride-hailing companies including Uber, Lyft, and Grab have been exiting unprofitable markets or shifting toward adjacent services such as deliveries and payments, due to rising costs, regulatory hurdles, and thin margins in emerging markets. Uber continues to operate in parts of the Middle East and North Africa but has withdrawn from Pakistan as of 2024.