Its official: Uber acquires Careem for $3.1 billion
Tuesday 26/March/2019 - 10:28 AM
Car hailing giants Uber and Careem have reached an agreement for Uber to acquire Careem for $3.1 billion، consisting of $1.7 billion in convertible notes and $1.4 billion in cash، the companies announced on Tuesday، Business recorder website reported.
The acquisition of Careem is subject to applicable regulatory approvals، meanwhile، the transaction is expected to close in Q1 2020.
“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،” announced Careem.
Upon closing، Careem will become a wholly-owned subsidiary of Uber، whereas، Careem co-founder and CEO Mudassir Sheikha will lead the Careem business، which will report to its own board made up of three representatives from Uber and two representatives from Careem.
the two companies will operate their respective regional services and independent brands. “This is an important moment for Uber 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،” said Uber CEO Dara Khosrowshahi.
“Joining forces with Uber will help us accelerate Careem’s purpose of simplifying and improving the lives of people، and building an awesome organisation that inspires…. 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،” said Careem CEO and co-founder، Mudassir Sheikha.
The companies were of the view that this transaction will supports the collective ability of Careem and Uber to improve the region’s transportation infrastructure at scale and offer diverse mobility، delivery and payment options. Both companies believe it will provide an opportunity to expand the variety and reliability of services offered، at a broader range of price points to serve more consumers.