Uber Acquires Careem For A Whopping $3.1 billion

Uber has taken another gigantic step towards solidifying its position as the world’s largest transportation network company by acquiring ride-hailing competitor, Careem, for $3.1 billion.

Dubai-based Careem, founded in 2012, boasts an impressive registered user-base of more than 30 million and sells car-hailing services in 120 cities across North Africa, the Middle East, and South Asia, from Morocco to Pakistan.

The companies characterized the deal as the biggest-ever technology industry transaction in the greater Middle East.

“Careem’s co-founder, in a twitter message, congratulated all stakeholders on this special occasion”

“Uber is approaching a much-anticipated initial public offering which is expected to be one of the biggest tech IPOs in history.”

The announcement comes as Uber approaches a much-anticipated initial public offering that reports have said could value the firm at as much as $120 billion. It is expected to be one of the biggest tech IPOs in history.

The deal will see Uber pay $1.4 billion in cash and the rest in notes convertible to Uber shares.

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,” Uber CEO Dara Khosrowshahi said in a statement.

He added that the combined company will “deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”

Careem co-founder and CEO MudassirSheikha will stay on to lead the Careem business, the companies said. Careem and Uber will continue to operate as independent brands.

Nimra Arshad

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