KARACHI: Careem will suspend its ride-hailingservice operationsinPakistan from July 18 after nearly a decade in the industry, its CEO announced on Wednesday, adding that its journey in the country would continue `in a different role`, reported Dawn.com.

Mudassir Sheikha, Careem`s CEO and co-founder, shared a post on LinkedIn announcing `a new chapter` for the company.` It is with a heavy heart that I share this update: Careem will suspend its ridehailing service in Pakistan on July 18, Sheikha said, adding that it was `an incredibly difficult decision.

`The challenging macroeconomic reality, intensifying competition, and global capital allocation made it hard to justify the investment levels required to deliver asafe and dependable service in the country. `In the end, the Careem Rides team had to make this tough call,` he said.

Careem`s exit came as newer entrants such as Russia-backed Yango and Latin America`s inDrive have expanded in major cities, offering low-cost models, Reuters said.

Sheikha called the ride suspension `the end of an iconic chapter one built with purpose, grit and a ton of relentless hustle`. He highlighted some of Careem`s notable achievements while operating in Pakistan, including safe rides on demand, women travelling with strangers, and smartphones and digital payments for everyday use.

`The challenges were real and formidable. But our Pakistan team was brilliant and fearless bold, determined, and literally on a mission to create millions of jobs for captains across the country,` hesaid. He lauded his team for building 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 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.

Sheikha said that nearly 400 Careem employees from 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 theexpansion of our Falcon/NextGen programme that brings in top graduates from Pakistani universities and gives them hands-on training on building highly scalable systems,` he said.

The company said Careem Care will be available till Sept 18 to help users with any pending issues or questions.

In April 2024, Uber made the decision to cease operating its ride-hailing app in Pakistan, saying: `Our subsidiary brand Careem will continue to operate, with the Careem app offering ride-hailing services across Pakistan and earning opportunities for drivers.

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 3.5pc, and consumption weakened. Startups including Airlift, Swvl, VavaCars and TruckItIn have shut down or scaled back.