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Ride-hailing service Uber announced on Tuesday it has acquired Mideast competitor Careem for $3.1 billion, giving the San Francisco-based firm the commanding edge in a region with a large young, tech-savvy population.
Uber said the $3.1 billion purchase consists of $1.7 billion in convertible notes and $1.4 billion in cash. It marks the largest technology transaction in the Middle East—outside of Israel—and propels the Dubai-based firm to legendary status among the region's budding tech startup scene.
Deal - Careem - Brand - App - Subsidiary
Under the deal, Careem will keep its brand and app unchanged, at least for now. It will operate as a wholly owned subsidiary of Uber and be led by its original founders. The deal is expected to close in the first quarter of 2020 and is subject to regulatory approval in several countries.
"This is an important moment for Uber as we continue to expand the strength of our platform around the world," Uber's CEO Dara Khosrowshahi said in a statement.
Memo - Uber - Staff - Khosrowshahi - Careem
In a memo to Uber's staff, Khosrowshahi said that keeping the Careem app for now allows Uber to try out new ideas across both brands. Over time, the firms will integrate part of their networks, he said.
Uber's stiffest competition in the Middle East was Careem, which launched in 2012—three years before Uber entered the local market. Careem,...
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