Uber acquires Middle East company Careem for $3.1 billion
March 26, 2019 | Investopaper
Uber, this Tuesday has confirmed a deal to acquire its Middle East rival Careem for $3.1 billion. Careem is a transportation network company based in Dubai. It runs its operations in over 100 cities in 14 countries in the Middle East, Africa, and South Asia.
The acquisition is expected to close in the first quarter of 2020 after the regulatory approval that consists of $1.7 billion in convertible notes and $1.4 billion in cash. This deal will help to strengthen the presence of Uber in the Middle East. One of the big supporters of the firm i.e. Saudi Arabia’s sovereign wealth fund is also based in the Middle East.
CEO OF Uber said in a statement that 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,”. He further elaborated that the combined company will “deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”
Previously, Uber had to withdraw from China and Southeast Asia after strong competition from domestic rivals.
Uber is all set to issue its IPO that is expected to be one of the biggest tech IPOs in history. The company is expected to get the valuation of around $120 billion. The announcement will further add a positive response to the IPO of the firm for sure. Uber reported a loss of $1.8 billion in 2018.
