San Francisco (TAN): Cab-sharing company Uber has sealed a deal to acquire Dubai-based ride-hailing company Careem.
Uber is paying USD 3.1 billion to bag the ‘largest ever technology-industry transaction by valuation’ in the greater Middle East region.
Careem, the internet platform for greater Middle East, was founded in 2012. It has emerged as the region’s market leader with over 30 million users in 120 cities across 15 countries.
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Uber said it would pay USD 1.4 billion in cash and the rest in convertible notes in a deal that will make Careem ‘a wholly-owned subsidiary of Uber’. While Careem will function as an independent brand and continue to be led by its founder and Chief Executive Officer Mudassir Sheikha, the company’s board will see a change with three representatives from Uber and two from Careem.
“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,” Sheikha said.
“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,” he added.
Careem’s mobility, delivery, and payments businesses across the greater Middle East region, including key markets in Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates, will be acquired by Uber as part of the deal.
The acquisition is expected to give both companies an opportunity to explore and expand the region’s transportation infrastructure and accelerate the delivery of digital services.
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Uber’s Chief Executive Officer 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,” he added.
The deal could close in the first quarter of 2020.
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