So, after months of rumors, the ride-hailing service Uber has bought its Middle East rival Careem for $3.1 Billion. The deal will finalize by the first quarter of next year where Uber will pay $1.7 billion in convertible notes and $1.4 billion in cash.
Uber has plans to acquire most of Careem’s businesses across Asia. It is worth noting that this is the biggest acquisition of a tech startup in the Middle East and some experts believe Uber paid more than the worth of Careem.
Talking about the Uber-Careem acquisition, Uber CEO Dara Khosrowshahi stated, “This is an important moment for us as we continue to expand the strength of our platform around the world. With a proven ability to develop innovative local solutions, Careem has played a key role in shaping the future of urban mobility across the Middle East, becoming one of the most successful startups in the region. Working closely with Careem’s founders, I’m confident we will deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”
The Careem CEO and co-founder, Mudassir Sheikha stated, “Joining forces with Uber will help us accelerate Careem’s purpose of simplifying and improving the lives of people, and building an awesome organization that inspires. The mobility and broader internet opportunity in the region is massive and untapped and has the potential to leapfrog our region into the digital future. We could not have found a better partner than Uber under Dara’s leadership to realize this opportunity. This is a milestone moment for us and the region, and will serve as a catalyst for the region’s technology ecosystem by increasing the availability of resources for budding entrepreneurs from local and global investors.”
As the deal finalizes next year, Careem will still operate under its brand name with Sheikha taking care of it as CEO and reporting to Careem’s own board comprising of three executives from Uber and two from Careem.
An Uber representative said, “Nothing changes until the transaction is closed in Q1 2020 per regulatory approval. Following that, we will operate as two separate brands in all the markets we operate in.”