Uber aquires Dubai-based rival Careem ahead of its IPO
- 7 months ago
Uber announced that it will finalize a deal to acquire ride-hailing competitor Careem for $3.1 billion.
Founded in 2012, Dubai-based Careem, founded in 2012, has more than 30 million registered users 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.
The announcement comes as Uber approaches a much-anticipated initial public offering that reports have said could value the company at as much as $120 billion and it is expected to be one of the biggest tech IPOs in history.
The acquisition, which remains subject to regulatory approval, consists of $1.7 billion in convertible notes and $1.4 billion in cash to be concluded by the first quarter of 2020.
According to Uber’s CEO, Dara Khosrowshahi, 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.”
Adding that the joint venture will “deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”
Source: Smart Trend Team