Uber is in advanced talks to buy its Dubai-based rival Careem, reported Bloomberg.
According to Bloomberg, the deal would expand the ride-hailing giant’s operations in the Middle East, according to people familiar with the matter.
The companies may announce a cash-and-stock transaction that values Careem at about $3 billion in the coming weeks, the report said.
Negotiations are ongoing and no final agreements have been reached, the people said. Both the Representatives for the Uber and Careem declined to comment.
Uber and Careem held preliminary talks in July to combine their Middle Eastern ride-hailing services, hoping to resolve a costly rivalry in the region, people familiar with the matter said at the time.
San Francisco-based Uber is emphasizing growth, investing aggressively in food delivery, logistics, electric bikes and self-driving cars, as it prepares for a potential initial public offering this year.
Careem, whose backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce giant Rakuten Inc., was valued at about $1 billion in a 2016 funding round, making it one of the most valuable technology startups in the Middle East.
The company has more than a million drivers (they call them captains) and operates in more than 100 cities in the Middle East, according to its website.
Acquiring a rival would be a departure in strategy for Uber.
The company has traditionally used such deals to offload costly overseas operations and take stakes in competitors, as it did in China, Russia and Southeast Asia.
A deal would signal Uber’s commitment to the Middle East, where one of its biggest investors, a Saudi Arabian sovereign wealth fund overseen by the divisive Crown Prince Mohammed bin Salman, is based stated Bloomberg.
i can seee how that would be profitable for them, but for end user that means no more cheaper rides :(
modi the terrorist, fooling his nation for political fervours, watch video
https://www.youtube.com/watch?v=R-AhOVwUyKM&t=328s
The sponsored article from Uber which sponsored the press release. In markets of the Middle East Region the UNCTAD fair competition it is not possible with one utility in transport to dominate the region. In the US, China, Far East markets Uber is at the level playing field, and in the US launching an IPO with fair competition. Careem has to obtain a clearance from the respective authority in the UNCTAD member country, to notice their exit for a monopoly of the world. Competition is always healthy, and hope Uber will take care of its corporate fairness to the flag of UNCTAD. To grow with the competition, as it is with Lyft. Yes the contribution of Uber to the transport hungary world of the Middle East Region as Karachi, where it has not started Ride Sharing optional Ride which could be shared as per Uber App., would help millions of bus riders to take a cab, auto, or any other mode of transport in Karachi where public transport does not exist at all, or any transport service for Seniors, men, women etc.
I hope the deal will not materialize. Uber is crap with unethical drivers.
This merger will be bad for the consumers. If it goes through then Uber will have a monopoly in the Pakistani market and will have no reason to stay competitive.
They should buy it but they should continue running both separately don’t merge it into a single company.
Careem is a worst ride service for drivers atleast in Pakistan cause there is no protection & security for drivers and no secure income they oraly claims that they deduct only 25 percent from drivers but the fact is they deduct 40 percent from their low income also cause of their strict policies “CAREEM SHOULD BE BAN IN PAKISTAN”strict policies are 85 percent of acceptance rate and for bonus amount 85 trips should be minimize by 40 tob45v
WE DONT WANT CAREEM ANYMORE IN PAKISTAN CAREEM HIGHER MANAGEMENT IN PAKISTAN RUN BY BUNCH OF DULL PEOPLE