Uber’s ride-hailing subsidiary in the Middle East, Careem, will shut down its operations in Pakistan on July 18 due to financial difficulties, increased competition, and other factors. This would put an end to Careem’s primary business in a nation where it was a pioneer in app-based transportation over ten years ago.
The action highlights the pressure on Pakistan’s digital economy as internet companies reduce their operations due to tighter global money flows, high inflation, and sluggish consumer demand. Careem, which debuted in 2015 and rose to prominence in the app-based mobility market, is ending an almost ten-year tenure.
Adding that it was “an incredibly difficult decision,” co-founder and CEO Mudassir Sheikha remarked, “I share this update with a heavy heart: Careem will suspend its ride-hailing service in Pakistan on July 18.”
Justifying the investment levels necessary to provide a safe and reliable service in the nation was difficult due to the difficult macroeconomic environment, escalating competition, and global capital allocation. He referred to it as “the end of an iconic chapter” and stated that the Careem Rides team ultimately had to make this difficult decision.
