If you’ve tried to book a ride on the Careem app in Pakistan recently, you’ve likely noticed that the service is no longer available. For years, Careem was a household name, revolutionizing how millions of Pakistanis commuted daily. So, what happened, and why did they exit the ride-hailing market?
In this article, we break down the timeline, the reasons behind the decision, and what the future holds for the brand in the region.
The Shutdown: When and Why?
On July 18, 2025, Careem officially suspended its ride-hailing services across Pakistan. This decision marked the end of an era for the pioneer of ride-sharing in the country.
The company cited several critical factors that made continuing operations unsustainable:
- Challenging Macroeconomic Climate: Persistent inflation and economic instability made it increasingly difficult to maintain affordable prices for users while ensuring fair earnings for captains.
- Intense Market Competition: The ride-hailing sector in Pakistan became incredibly crowded, leading to aggressive pricing wars that squeezed profit margins.
- Operational Costs: As a capital-intensive industry, the cost of maintaining a safe, reliable, and high-quality fleet of vehicles became too high given the current market environment.
Understanding the “Careem Split”
A common point of confusion for many users is why the app still exists or why the company hasn’t completely “vanished.” To understand this, it is important to distinguish between the two sides of the business:
- The Ride-Hailing Arm (Owned by Uber): This is the segment that ceased operations in July 2025.
- The Careem Super App (Owned by e& and partners): The “Super App” vision, which includes services like food delivery, logistics, and fintech (payments)—is owned by a different entity (e&, formerly Etisalat, alongside other partners).
While the ride-hailing button is disabled in the app for Pakistan, the company’s commitment to other digital services in the region continues.
Is Careem Still Operating in Pakistan?
Yes, but not as a taxi service. The Careem technology team remains active in Pakistan. The brand has shifted its focus away from moving people to moving goods, food, and financial services. If you have the app installed, you may still see it functional for services other than booking a car or bike.
What Are the Best Alternatives for Ride-Hailing in Pakistan?
With Careem out of the ride-hailing market, users have turned to other platforms to get around. Some of the most popular alternatives include:
- InDrive: Known for its “name your price” model, which allows passengers to negotiate fares directly with drivers.
- Yango: A growing player in the market offering competitive pricing and a user-friendly interface.
- Bykea: Primarily focused on motorbike taxis, deliveries, and courier services, which remain a highly cost-effective way to travel in congested cities.
The Bottom Line
The closure of Careem’s ride-hailing service in Pakistan was a direct response to the harsh economic realities of the local market. While it represents a significant shift in Pakistan’s digital landscape, it also highlights the growing pains of the gig economy.
As the market evolves, users are adapting to new platforms, while Careem continues to pivot toward its “Super App” goals in other sectors.
