Hunain Khalid
Chief Minister (5k+ posts)
Uber and Careem have now reached an agreement for Uber to acquire Careem for $3.1 billion where $1.7 billion will be in convertible notes and $1.4 billion in cash. The two companies took to Twitter to make the official announcements.
The ride-hailing giant Uber will acquire all of Careem’s mobility, delivery, payments across the Middle East going from Morocco to Pakistan including major markets such as Egypt, Jordan, Saudi Arabia and UAE.
“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,” said Dara Khosrowshahi, CEO of Uber in a blog post.
Careem, on the other hand, will become a wholly-owned subsidiary of Uber making sure the brand remains as it is. Mudassir Sheikha, the co-founder and CEO of Careem will lead the Careem business and will present reports to the three representatives which includes one from Uber and the remaining two from Careem.
The two ride-hailing services will still operate from their respective regional services representing their independent brands.
“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 are massive and untapped and has the potential to leapfrog our region into the digital future. We could not have found a better partner than Uber under Dara’s leadership to realise this opportunity,” said Sheikha.
This acquisition will bring both Uber’s leadership and technical expertise with Careem’s regional technology infrastructure and ability to develop innovative local solutions.
For drivers and captains though, the company believes there will be an increase in trip growth and improved services which will make their earnings more predictable and make the working environment much better.
The ride-hailing giant Uber will acquire all of Careem’s mobility, delivery, payments across the Middle East going from Morocco to Pakistan including major markets such as Egypt, Jordan, Saudi Arabia and UAE.
“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,” said Dara Khosrowshahi, CEO of Uber in a blog post.
Careem, on the other hand, will become a wholly-owned subsidiary of Uber making sure the brand remains as it is. Mudassir Sheikha, the co-founder and CEO of Careem will lead the Careem business and will present reports to the three representatives which includes one from Uber and the remaining two from Careem.
The two ride-hailing services will still operate from their respective regional services representing their independent brands.
“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 are massive and untapped and has the potential to leapfrog our region into the digital future. We could not have found a better partner than Uber under Dara’s leadership to realise this opportunity,” said Sheikha.
This acquisition will bring both Uber’s leadership and technical expertise with Careem’s regional technology infrastructure and ability to develop innovative local solutions.
For drivers and captains though, the company believes there will be an increase in trip growth and improved services which will make their earnings more predictable and make the working environment much better.
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