End of an Era: Careem Rides to Suspend Operations in Pakistan on July 18.
Careem’s CEO and co-founder took to LinkedIn, announcing that Careem Rides will suspend its ride-hailing service in Pakistan starting July 18. He described it as “an incredibly difficult decision” driven by “challenging macroeconomic reality, intensifying competition, and global capital allocation.”
The journey began in 2015, overcoming skepticism around safe rides on demand, women traveling alone, and digital payments. As Pakistan’s Careem chapter unfolded, it created millions of jobs for captains, established digital infrastructure, and built trust, regulation, and local capability—paving the way for countless digital ventures.
🚦 Why Now?
Economic Headwinds: Careem faced a sharply devalued rupee and inflation that made growth untenable.
Tough Competition: Rivals like inDrive and Yango have surged ahead—Careem’s registered daily users dropped to around 374,000, compared to inDrive’s over 2 million in Pakistan.
Strategic Capital Allocation: Investors, including regional venture funds, are deprioritizing consumer mobility in favor of more lucrative or stable opportunities abroad.
Despite suspending ride-hailing, Careem’s presence in Pakistan continues. The company’s “Everything App” spinout—focused on food/grocery delivery, payments, and vertical services—will maintain a team of nearly 400. Plans include hiring more than 100 graduates and scaling its Falcon / NextGen program to train engineers for regional roles.
Careem’s CEO emphasized:
“Pakistan is in Careem’s DNA,our first line of code was written here… We hope to bring Careem’s services back to the country in the future.”
He also praised his team, led by Junaid Iqbal, for their “boldness, brilliance, and passion” in building an iconic service under adversity.
💡 Broader Lessons
Was Careem mismanaged? Not by leadership—Careem’s decline reflects a market shift, not strategic failure. The top team appears responsive, pivoting to future-facing verticals.
Why do well-funded startups close? Market economics in Pakistan—currency volatility, inflation, and aggressive low-cost competitors—can undermine even well-capitalized players.
Is this a leadership failure? Less so—this is a strategic retreat, not collapse. The pivot toward its “Everything App” reveals adaptation, not defeat.
📌 Final Take
Careem’s ride-hailing exit marks the end of a notable chapter yet also signifies a strategic pivot aimed at long-term sustainability. Its continued investment in local talent and regional innovation underscores a commitment to Pakistan, despite the current market hurdles.
Stay tuned as MediaBites tracks how Careem’s transition shapes the local tech and mobility ecosystem.
