Uber recently sent an email with the subject line “To a New Chapter” confirming its acquisition of Careem, for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash. They also mention that the acquisition is subject to applicable regulatory and the transaction is expected to close in Q1 2020.
Although Uber will be acquiring all of Careem’s mobility, delivery, and payments businesses across the Middle East, including Morocco, Egypt, Jordan, Pakistan, Saudi Arabia, and the UAE, the email states that nothing will be changed and that both Uber and Careem will continue to operate as independent apps.
According to a post published by Uber, Careem will become a wholly-owned subsidiary of Uber, preserving its band, with the same co-founder and CEO Mudassir Sheikha leading the Careem Business. Sheikha will be reporting to its own board that’s made up of three representatives from Uber and two representatives from Careem.
Uber CEO, Dara Khosrowshahi commented on the acquisition saying: “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. Working closely with Careem’s founders, I’m confident we will deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”
Careem CEO and co-founder, Mudassir Sheikha also commented on the acquisition stating that Uber will help them accelerate Careem’s purpose of simplifying and improving the lives of people. “The mobility and broader internet opportunity in the region is massive and
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