ISLAMABAD: Careem, the Dubai-based super-app with operations in 70 cities worldwide, will suspend its core ride-hailing service in Pakistan from today, Wednesday, due to worsening economic conditions and stiff market competition, its co-founder announced in a statement on LinkedIn.
Careem launched in Pakistan in 2015 and quickly became a household name for offering a cheap and easy alternative to traditional taxis and rickshaws. The company’s app-based service helped popularize cashless payments and gave flexible income opportunities to thousands of drivers, known as “captains.”
“This was an incredibly difficult decision [to suspend operations]. 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,” Sheikha said.
In recent years, Pakistan’s economic downturn, currency depreciation and rising fuel costs have squeezed ride-hailing margins.
Local players and international competitors, including Uber, which acquired Careem’s regional ride-hailing business in 2020, have also intensified competition for drivers and customers in key cities like Karachi, Lahore and Islamabad.
