Pakistan’s ride-hailing market has reached about 5% of the country’s population, while globally it stands at around 20%. This shows there is a lot of room for growth. The main challenge is the shortage of vehicles. Unless banks increase financing options for freelance drivers, this shortage could slow down expansion, said Wael Ibrahim, Regional Director EMEA at inDrive.
In comments to the media, Ibrahim said Pakistan has become one of inDrive’s growing markets and one of the most important for the company worldwide. InDrive started operations in Pakistan in 2021. Now runs ride-hailing services in more than 20 cities. Its intercity service connects over 200 cities across the country.
He added that fast urbanization, increasing smartphone use, and weaknesses in transport are driving strong demand for affordable and reliable transport. Still, the low usage rate shows the ride-hailing industry in Pakistan is still in its early phase.
Ibrahim pointed out that the availability of vehicles is one of the supply-side issues. InDrive believes that better access to auto loans could help more people join the platform economy as drivers.
This idea comes at a time when auto financing is already showing recovery. According to Yasin Kodvavi, Research Head at Optimus Capital Management, car financing has jumped by 35%, rising from nearly Rs275 billion to around Rs381 billion compared to the previous year.
Banks face challenges in financing freelancers
Kodvavi said that banks could give auto loans to freelance drivers, yet vetting and due diligence would still be a challenge. Kodvavi added that unstable demand and income, along with no promise to keep freelancing, could make it hard for banks to evaluate borrowers and handle the risk of loans that are not paid back.
Kodvavi also mentioned that the rising cost of ride‑sharing is another reason that limits demand. Kodvavi said that the affordability problem is not on the supply side.
Kodvavi said that the financing problem also ties to the ceiling for local vehicles. Kodvavi noted that the auto‑financing limit is still capped at Rs3 million even though there have been calls to lift it to Rs6 million.
Former PAAPAM Chairman Abdul Rehman Aizaz said that vehicle financing through equated instalments is a key part of vehicle sales in markets worldwide.
Pakistan, however, keeps car financing tightly controlled by limiting both the amount of finance and the length of loans, Abdul Rehman Aizaz said. Abdul Rehman Aizaz added that banks are usually more comfortable lending to the government than taking risks on consumer finance.
Abdul Rehman Aizaz admitted that freelance financing has risks. He argued that it is an area worth exploring. Abdul Rehman Aizaz said that with safeguards and government support, freelance vehicle financing could create many self‑employment opportunities for young people.
Flexible fares make the platform more appealing
Ibrahim said inDrive’s peer-to-peer pricing model was especially good for Pakistani price-sensitive customers. Even though there was inflation changing fuel prices and rules that were hard to deal with, he said the company kept growing because its way of working was made to fit conditions instead of relying a lot on help from subsidies.
The growth of ride-hailing services also comes with attention to safety and being responsible. Yango’s 2024-25 Ride Safety Report shows that serious traffic violations reported went down by 31% around the world, from 9.83 incidents for every million trips in 2024 to 6.76 in 2025. In the MENA and South Asia area, dangerous driving reports dropped 47% from 19.25 to 10.1 per million trips.
Data specific to Pakistan in the report shows that after-ride contacts went down 31%, while Yango brought selfie-based fraud methods to Pakistan along with other areas.
The report says Yango uses checks for documents and identity, selfie verification checks on vehicles, and anti-fraud tools to stop people who might be up to no good from using its services.
Technology is also used during and after rides, through tracking the route, protected calls, GPS signals to look at driving style, and getting feedback from riders. In-app calls and hiding phone numbers let users talk without showing their phone numbers.
In Punjab, Yango has also worked with the Punjab Safe Cities Authority. When users call the emergency number 15 through the app’s safety feature, trip details, vehicle and driver information, and location can be sent automatically to the police, which could help get a response.
From ride-hailing to the broader gig economy
Ibrahim said inDrive was looking beyond ride-hailing, expanding into intercity travel, courier, freight and groceries as part of a broader “Super App” strategy.
Its grocery service is operating in Karachi and Lahore, while courier and freight operations are being scaled to support consumers, SMEs and local businesses. The broader ecosystem could also provide drivers with earning opportunities beyond passenger rides.
The company is additionally exploring ways to support mobility, including retrofitting petrol motorcycles into electric motorcycles at a lower cost than purchasing new EVs.
For Pakistan, the bigger opportunity may therefore lie not simply in increasing the number of ride-hailing users. In creating an ecosystem where vehicle financing, digital platforms and flexible employment combine to bring more drivers and consumers into the formal mobility economy.
