Careem, the Middle East-based ride-hailing firm owned by Uber, will suspend operations in Pakistan from July 18, marking the end of a nearly decade-long presence in a market it helped transform.

The company cited economic challenges, heightened competition, and constrained capital as reasons for the shutdown, reflecting broader struggles within Pakistan’s digital economy. “This was an incredibly difficult decision,” Careem CEO and co-founder Mudassir Sheikha said in a LinkedIn post. “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 entered the Pakistani market in 2015 and rapidly became a major player, pioneering app-based mobility and helping normalize digital payments and ride-hailing for women in a traditionally conservative society. But the landscape has shifted.

Newer entrants like Russia-backed Yango and Latin America’s inDrive have grown their footprint in major cities, offering lower-cost alternatives and squeezing market share.

Careem’s exit comes two years after parent company Uber withdrew from Pakistan in 2022, and confirms its full departure in 2024. The move adds to a string of retrenchments in Pakistan’s tech ecosystem, which has seen high-profile startups like Airlift, Swvl, VavaCars, and Truck It In shut down or significantly scale back since 2022.

The country’s digital sector has been battered by surging inflation—peaking at 38%—sluggish consumer demand, and dwindling venture funding amid global economic uncertainty. Internationally, major ride-hailing platforms like Uber, Lyft, and Grab have also exited unprofitable markets, citing rising operational costs, tight regulations, and low profit margins.

Careem continues to operate in other parts of the Middle East and North Africa.