Careem to suspend decade-old Pakistan service
KARACHI: After more than a decade of operations, Careem announced on Wednesday that it will shut down its ride-hailing services in Pakistan, effective July 18.
Mudassir Sheikha, CEO of Careem, announced the decision via a post on the professional networking platform LinkedIn. 'It is with a heavy heart that I share this update: Careem will suspend its ride-hailing service in Pakistan on July 18.'
Sheikha described it as an incredibly difficult decision, citing a combination of factors- 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 Pakistan. 'In the end, the Careem Rides team had to make this tough call.'
Careem, a multinational ride-hailing company founded in 2012, entered the Pakistani market in October 2015. In 2019, it was acquired by Uber for $3.1 billion, solidifying its position as the largest unicorn in the Middle East and opening new avenues for startups across the region.
Sheikha said that despite numerous challenges, Careem's Pakistan team remained brilliant and fearless-bold, determined, and driven by a mission to create millions of job opportunities for captains across the country.
'They (Careem Team) did not just build a service that millions of Pakistanis relied on to move and earn, they delivered significant public goods: digital infrastructure, trust, regulation, capability, confidence - all of which paved the way for countless local and global digital ventures to take root in Pakistan', he added.
He said that while ride-hailing is sunsetting, Careem's journey in Pakistan continues in a different role. Careem Technologies (the spinout building the Everything App) will continue to build from Pakistan for the region.
He mentioned that nearly 400 colleagues across all functions (including engineering) are building the Everything App and its ecosystem of verticals (food/ grocery delivery, payments, and more).
This presence is only set to grow, with over 100 open roles and the expansion of our Falcon/ NextGen program that brings in top graduates from Pakistani universities and gives them hands-on training on building highly scalable systems, he added.
'Pakistan is in Careem's DNA-our first line of code was written here, and the country remains a rich source of innovation and talent for us. Our commitment to Pakistan remains strong and I sincerely hope to bring Careem's services back to the country in the future', CEO Careem said.
He also paid tribute to those heroes who built Careem in Pakistan under the bold leadership of Junaid Iqbal.
Setup in 2012, Careem operates in over 70 cities across 10 countries, from Morocco to Pakistan and creating earnings for over 2.5 million Captains.
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