Uber is paying $3.1BN to pick up Middle East rival Careem

TechCrunch | 3/26/2019 | Staff
TimHyuga (Posted by) Level 3
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After months and months of rumors it’s finally been confirmed that ride-hailing giant Uber is picking up its Middle East rival Careem in an acquisition deal worth $3.1 billion — with $1.7BN to be paid in convertible notes and $1.4BN in cash.

Careem was founded as a ride-hailing rival to Uber in 2012 but has since diversified its business to include offerings such as food and package deliver, bus services and credit transfers — bolstered via acquisitions of its own, such as RoundMenu and Commut (both announced last year).

Uber - Transaction - Q1 - Approvals

Uber writes that it expects the transaction to close in Q1 2020, pending applicable regulatory approvals.

It says it will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, which it notes ranges from Morocco to Pakistan. Major markets are stated to include Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates.

Statement - Uber - CEO - Dara - Khosrowshahi

Commenting in a statement, Uber CEO Dara Khosrowshahi said:

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.

Careem - CEO - Co-founder - Mudassir - Sheikha

While Careem CEO and co-founder, Mudassir Sheikha had this to say in another supporting statement:

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. 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...
(Excerpt) Read more at: TechCrunch
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