Ride-hailer Careem to suspend decade-old Pakistan service
Careem, Uber's ride-hailing arm in the Middle East, will suspend its Pakistan service on July 18, citing economic challenges, rising competition and capital constraints, ending its core business in a country where it helped pioneer app-based transport nearly a decade ago.
The move underscores strain on Pakistan's digital economy, as tech firms scale back amid high inflation, weak consumer demand and tighter global capital flows. It ends a nearly decade-long run for Careem, which launched in 2015 and became a dominant player in app-based mobility.
"This was an incredibly difficult decision," Mudassir Sheikha, co-founder and CEO of Careem, said in a LinkedIn post on Wednesday. "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."
Careem helped normalise digital payments, app-based bookings and female ridership in Pakistan.
Newer entrants such as Russia-backed Yango and Latin America's inDrive have expanded in major cities, offering low-cost models.
The decision follows Uber's exit from Pakistan in 2022.
Pakistan's startup ecosystem has come under pressure since 2022 as venture funding dried up, inflation surged to a record 38 per cent before falling to 3.5 per cent, and consumption weakened. Startups including Airlift, Swvl, VavaCars and Truck It In have shut down or scaled back.
Globally, firms like Uber, Lyft and Grab have exited unprofitable markets, narrowed focus, or expanded into adjacent services such as deliveries and payments. Rising costs, regulation, and thin margins in emerging markets have added to the strain.
Uber still operates in parts of the Middle East and North Africa but has pulled back from Pakistan in 2024 after announcing an initial exit in 2022.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
a day ago
- Zawya
Putin says recession and stagnation in Russia's economy must not be allowed to happen
President Vladimir Putin said on Friday that Russia must avoid the risk of recession or stagnation, and the task facing the country was to switch the economy to balanced growth. "Balanced growth is moderate inflation, low unemployment, and continued positive economic dynamics... At the same time, some specialists and experts point to the risks of stagnation and even recession. This should not be allowed under any circumstances," Putin said in a speech to Russia's showcase economic forum in St Petersburg. (Reporting by Vladimir Soldatkin and Darya Korsunskaya; Writing by Anastasia Teterevleva; Editing by Mark Trevelyan)
Zawya
2 days ago
- Zawya
Saudi energy minister: OPEC+ become key guarantor of oil prices
ST. PETERSBURG — Saudi Minister of Energy Prince Abdulaziz bin Salman said on Thursday that OPEC+ has become a key guarantor of oil prices and the oil sector as a whole. Speaking at the St. Petersburg Economic Forum on Thursday, he said that OPEC+ is a trustworthy and successful alliance that adapts to changing conditions and has had great success in maintaining oil market stability. In response to a question on whether Saudi Arabia and Russia would step into replace any potential loss of Iranian oil supplies, Prince Abdulaziz said: "We will only react to realities." The energy minister said that Saudi Arabia and Russia are working together to create a climate for those wishing to invest in both countries in various ways, including through joint ventures, emphasizing the need to create a suitable investment climate despite the current circumstances Iran is a member of the Organization of the Petroleum Exporting Countries (OPEC), but is exempt from production cuts that the group along with other allies including Russia have in place. OPEC+ was in the process of increasing production targets for eight of its members before Israel's attack on Iran last week. The group of eight which includes Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Oman, Algeria and Kazakhstan will meet on July 6 to decide on whether to increase production further from August. At the end of May, the Organization of the Petroleum Exporting Countries (OPEC) announced that the eight OPEC+ member states had agreed to increase oil production by 411,000 barrels per day in July. The organization said in a statement that the increase was due to stable global economic conditions and the strength of current market fundamentals. The eight OPEC+ members, which include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, had previously announced additional voluntary adjustments in April and November 2023, held a meeting via video conference on Saturday to review oil market developments and future prospects. The OPEC+ statement said that in light of the stable future prospects for the global economy and the current positive market fundamentals, the participating countries decided to implement a production adjustment of 411000 barrels per day in July 2025 compared to the required production level in June 2025, which is equivalent to three monthly increases. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
The National
2 days ago
- The National
Putin ready to help bring end to Israel-Iran conflict, Russia's sovereign fund chief says
Russia 's President Vladimir Putin is open to playing his part in any US-led regional mediation between Israel and Iran, the head of Russia's sovereign wealth fund said on Thursday. 'I think it's very important, the next three to five days will be very decisive,' Kirill Dmitriev, chief executive of the Russian Direct Investment Fund, told The National on the sidelines of the St Petersburg International Economic Forum. 'Russia, as President Putin mentioned, is willing to be very helpful in this very important [matter] for the world situation.' This message from Mr Dmitriev − who has been at the helm of the state-controlled investment vehicle since its inception in 2011 − comes as the US contemplates joining Israel in strikes on Iran's military and nuclear assets. The conflict that began last week has roiled energy markets and sent jitters through financial investors, who are closely watching Washington's next move. US President Donald Trump has said he 'may' or 'may not' choose to carry out strikes on targets in Iran. Iran and Russia have deep historical ties, both economic and defensive, but the Kremlin's relationship with Tehran in recent years has centred mostly around Iranian drone production for the Russian war in Ukraine. The two sides are also regularly engaged in discussions on Opec+ oil output caps. Impact on oil markets 'If you look at [the crisis] simply economically, we could see significant spike in oil prices, which, you know, may be good in the short term,' Mr Dmitriev said. However, Russia, he added has always been an advocate of stable oil prices, he added. 'Because this is good for investments, for consumers and for producers. So again, we'll see. I think in the past we had experience where Russia, the US and Saudi Arabia jointly acted to stabilise oil prices, we will see if that is needed or not,' he said. 'Trump understands Putin' Mr Dmitriev is no stranger to Russian diplomatic efforts. Most recently, he attended talks in Riyadh in March, alongside Russian Foreign Minister Sergey Lavrov. Discussions were held with a US team including Secretary of State Marco Rubio, special envoy to the Middle East Steve Witkoff, and the then national security adviser Mike Waltz. 'President Trump … really understands how President Putin thinks, what the options are,' Mr Dmitriev said. 'The direct negotiations between Russia and Ukraine are the result of President Trump and his team pushing for direct discussions. 'I think also we see some recognition from the Trump administration that US sanctions have been negatively affecting US businesses.' Sanctions 'not way forward' With Russia now facing a possible 18th round of economic sanctions from Europe and further US sanctions expected from the Senate in July, Mr Dmitriev said that in the White House, at least, there is a growing understanding that the current financial tools do not work. 'For example, are you really going to have a 500 per cent tariff on one nation if you stabilise tariffs with some of the key nations? Most people don't think it's realistic,' Mr Dmitriev said.
