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”
Congratulations to every @Careem Captain, Customer and Colleague on this special moment. We've been blessed to impact the lives of millions in the region and it’s only the start as we join forces with @Uber.
— Mudassir Sheikha (@MudassirSheikha) March 26, 2019
“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.
Today, we start Chapter 2 of our story. Careem is joining forces with Uber to better serve the region
We will operate independently, so the app, services and brand you love will continue to be available as usual.
— Careem (@careem) March 26, 2019
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.
We're proud to announce we’ve agreed to acquire @Careem, one of the Middle East’s most successful startups. We’re excited to partner with @Careem to better serve the region and maintain a tailored local experience for mobility, delivery and payments. More: https://t.co/aXWaEvN6jj
— Uber Comms (@Uber_Comms) March 26, 2019
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.