It’s Official: Uber And Careem Are Joining Forces!
Ride-hailing competitor apps Uber and Careem are officially joining forces, as announced by both companies earlier today.
In an attempt to eliminate tough competition in the Middle East, Uber first initiated negotiations to buy out Careem more than 9 months ago, and today they finally landed a much-needed victory after previously sustaining heavy losses and selling their operations in China, Russia and Southeast Asia to local rivals.
Uber will reportedly spend $3.1 billion to acquire Middle East rival Careem, paying $1.4 billion in cash and $1.7 billion in convertible notes. The deal is expected to close in the first quarter of 2020, the companies said, and is characterized as the biggest-ever technology industry transaction in the greater Middle East.
According to the companies, the acquisition will make Careem a wholly-owned subsidiary of Uber but will keep the Careem brand and app intact, and both firms will continue to operate as independent brands.
Dubai-based Careem, founded in 2012, has a larger presence than Uber in the Middle East, North Africa, Pakistan, and Turkey, operating in 98 cities compared with Uber’s roughly 23 locations.