Careem will shut down its ride-hailing services in Pakistan on July 18, 2025, due to economic challenges, rising competition, and global capital priorities.

Launched in 2015, Careem became a key mobility player in Pakistan, enabling millions of rides and creating job opportunities for drivers.

While ride-hailing ends, Careem Technologies will continue operating its “Everything App,” offering food delivery, groceries, and digital payments.

Careem aims to grow its tech workforce in Pakistan, where it already employs nearly 400 people and has over 100 open positions.

Despite the change, Careem remains committed to Pakistan and may restart its ride-hailing services in the future.

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🔗 Source: Mudassir Sheikha

🧠 Food for thought

1️⃣ Pakistan’s tech ecosystem faces broader contraction beyond Careem

Careem’s exit from Pakistan’s ride-hailing market reflects a troubling pattern affecting the entire digital economy ecosystem.

Since Uber’s withdrawal in 2022, multiple startups including Airlift and Swvl have either shut down or significantly reduced operations, creating a domino effect in the transportation sector 1.

The challenging environment stems from macroeconomic factors including inflation that peaked at 38% (though now down to 3.5%), persistently low consumer spending, and dried-up venture funding 2.

The regulatory landscape has further complicated sustainability, with new government policies imposing a 5% digital levy and an 18% e-commerce tax that directly impact profitability margins for digital businesses 2.

This pattern of digital contraction is also evident in other price-sensitive emerging markets, where economic pressures force even established players to reassess their operational viability.

2️⃣ Super app strategy reflects shifting business models in challenging markets

While Careem is ending its ride-hailing service, its decision to retain and expand its technology operations in Pakistan through the “Everything App” reveals a strategic pivot many tech companies are making.

Careem’s plan to maintain over 400 employees and hire 100 more for its super app development demonstrates a shift from single-service operations to diversified digital ecosystems that can better weather economic volatility 3.

This follows a global trend where companies like Lyft and Grab are exiting unprofitable service lines while focusing resources on more lucrative areas such as food and grocery delivery 1.

The Everything App strategy allows companies to spread risk across multiple services, maintain customer relationships, and create more sustainable economics through cross-selling and reduced customer acquisition costs.

Pakistan remains strategically important for Careem’s broader regional technology development, as the company’s “first line of code was written here,” highlighting how emerging markets can remain vital for innovation even when direct services become economically unviable 4.

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