On January 2, Uber announced that it has finalised a deal to acquire Middle Eastern mobility, delivery and payment platform Careem for US$3.1 billion.
The acquisition will result in Careem becoming a wholly owned subsidiary of Uber, preserving its brand and maintaining its operation in the greater Middle Eastern region.
Further, Careem co-founder and CEO Mudassir Sheikha will continue to lead the Middle Eastern outfit while reporting a board consisting of three Uber representatives and two from Careem.
Still, both companies await regulatory approvals from Pakistan, Qatar, and Morocco. However, it will proceed to operate as an Uber subsidiary in Egypt, Jordan, Saudi Arabia, and the United Arab Emirates.
“We are excited to take Careem to new heights alongside Uber, who appreciates the significant regional opportunity, is supportive of our values and culture, and believes in the purpose that drives us,” he said.— Mudassir Sheikha, co-founder and CEO, Careem
According to Sheikha, “Today marks the beginning of a new chapter for Careem. The journey that we started almost a decade ago to simplify the lives of people in the greater Middle East is far from over.”
“We are excited to take Careem to new heights alongside Uber, who appreciates the significant regional opportunity, is supportive of our values and culture, and believes in the purpose that drives us,” he said.
The acquisition will allow both companies to enhance the variety and reliability of the services they offer through their applications. In addition, both claim that an increase in the number of trips and improvement in service will create better economic opportunities and more predictability of earnings for drivers and captains.
“I’m looking forward to seeing even more innovation from Careem, as they continue to operate independently under their current leadership,” Uber CEO Dara Khosrowshahi shared.
“Working in parallel, our two platforms will be able to build upon the unique strengths of each, to the benefit of drivers, riders, and the cities we serve across the greater Middle East,” he continued.