Dubai: Global ride-hailing service Uber will acquire its Middle East rival Careem for $3.1 billion, the two companies have announced. “Careem and Uber are joining forces. We have reached an agreement in which Uber will acquire Careem for $3.1 billion,” a joint statement said. Under the deal, Careem will become a wholly owned subsidiary of Uber but will continue operating independently. Careem will retain its branding, services and separate app.
Uber will pay $1.4 billion in cash and the remaining $1.7 billion in convertible notes, the statement said. “Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates,” the statement said. “This is an important moment for Uber as we continue to expand the strength of our platform around the world,” Uber chief executive Dara Khosrowshahi said. Careem CEO Mudassir Sheikha welcomed the acquisition, as good for customers.
