In a surprising yet long-anticipated move, Careem has announced it will suspend its ride-hailing services in Pakistan from 18 July 2025. After nearly 10 years of operations in the country, the platform is winding down a journey that once seemed full of promise and innovation.
The decision comes during a time of great economic and structural uncertainty. Over the years, Pakistan’s economy has faced immense pressure — rising inflation, shrinking purchasing power, and a tough environment for international investors. These broader financial difficulties have had a direct impact on technology-based businesses, especially those relying on digital platforms and mobile-based consumer services.
Careem entered the Pakistani market in 2015 with a vision to change how people moved around cities. It introduced a model where users could book rides using their smartphones — a concept that was new and exciting at the time. It offered a level of convenience and efficiency that was lacking in traditional taxi services. It also gave passengers a sense of safety, especially women, who appreciated the ability to track rides and share their trips with loved ones.
However, while the service gained popularity, it was not without challenges. One of the major issues that affected public trust in the platform was inconsistent service quality. Many customers complained about drivers starting ride fares before even reaching the pick-up point or taking longer routes to increase the fare. Some even refused to accept short-distance rides or declined trips outside the city limits.
There were also complaints about drivers asking for more money than what the app showed at the end of a ride. Passengers reported being shown screenshots with incorrect fare details or being asked to pay cash even after selecting digital payment options.
For the country’s tech ecosystem, it is a reminder that success requires more than innovation — it requires lasting economic support, fair treatment of workers, and trust from the users
These incidents may have seemed isolated at first, but they created a negative reputation over time. For a service that relied heavily on trust and transparency, even a small number of such experiences led to wider dissatisfaction.
Similarly, the situation was not easy for the drivers either. Many signed up with the hope of earning a stable income, but soon faced rising fuel prices, vehicle maintenance costs, and a drop in ride demand. Drivers had to bear these expenses while their earnings remained unpredictable.
Some also felt the bonus structures were confusing or unfair. There were occasions when different fare categories caused misunderstanding and tension between drivers and the company. At one point, drivers of low-cost categories protested in major cities, feeling they were being underpaid for their efforts. These concerns pointed to the deeper issue of whether the ride-hailing model provided fair employment conditions.
While Careem tried to promote itself as a safer option, particularly for women, not all experiences lived up to this promise. There were concerning stories of drivers making inappropriate comments or behaving in an unprofessional manner. In some cases, women reported drivers taking unclear routes or making them feel uncomfortable during the ride.
These incidents highlighted gaps in the driver screening and training process. Though the company had measures in place — such as emergency buttons and live tracking — many users questioned their effectiveness. Safety is a core requirement for any transport service, and failures in this area can lead to a significant loss of public confidence.
Over the last few years, Pakistan’s economic challenges have intensified. The value of the national currency dropped sharply, and inflation made everyday goods and services more expensive. This had a direct impact on both riders and drivers.
For passengers, ride fares became less affordable. For drivers, costs went up while the number of rides they received went down. The company tried to adjust by ending some of its other services, such as food delivery and digital payments, but that was not enough to keep the core ride-hailing business sustainable.
Careem was also facing tough competition. Newer ride-hailing platforms began entering the market, offering different pricing models, including options where passengers could negotiate fares with the drivers. These services often charged lower commissions and attracted both riders and drivers with better short-term incentives.
As a result, Careem lost a significant portion of its user base. Even drivers who preferred Careem’s platform admitted they were getting fewer rides and had to turn to other apps to meet their income needs. Careem did try to support its drivers in various ways, such as offering health insurance, discounts on vehicle maintenance, and even financial support during difficult times like the pandemic, but many of these measures were seen as temporary solutions to deeper problems. Drivers continued to operate without proper job protections or guaranteed income, which raised concerns about the long-term future of such gig-based employment.
The platform also tried to encourage more women to become drivers by offering support and training, but social and cultural barriers, along with the safety concerns, limited the success of these efforts.
Ride-hailing companies in Pakistan also face unclear rules and regulations. Traditional taxi drivers and unions have protested online platforms, arguing for equal treatment in licensing and taxes. Authorities have at times stepped in, demanding better regulations or even attempting to ban some services.
All this created an unstable environment for growth. For businesses that depend on consistent policies and strong investor backing, this instability added another layer of difficulty.
Careem’s decision to leave Pakistan is not just about one company’s failure to meet its targets. It reflects wider questions about whether technology-based services can survive in an uncertain economic and regulatory climate. Pakistan’s digital economy has great potential, but it needs structural reforms. This includes better protection for the drivers, clearer regulations for digital services, and policies that encourage sustainable business models rather than short-term promotions.
Careem’s exit is a moment for reflection. For drivers, it means the loss of a once-promising source of income. For passengers, it removes a platform that played a big role in changing how people travel. For the country’s tech ecosystem, it is a reminder that success requires more than innovation — it requires lasting economic support, fair treatment of workers, and trust from the users.
As Pakistan looks ahead, it must decide what kind of digital future it wants to build. There is room for innovation, but also a need for stability. Ride-hailing services are not just apps — they are part of daily life for millions. They must be reliable, fair, and safe. Careem’s story, with all its highs and lows, is a lesson in the challenges of balancing growth with responsibility. It shows that even strong ideas can fall short when the foundation beneath them is shaky.
It is not just about who comes and goes — it is about building systems that last.