Uber Technologies Inc. is in talks to acquire UAE-based rival Careem, as it continues its expansion in the Middle East.
According to some anonymous sources, the deal could value Careem from $2 billion to $2.5 billion. So far, the negotiations are ongoing and Careem’s management is trying to convince their shareholders of the merits of a deal, but no final decisions have been made and could decide against it.
Back in July, the two ride-hailing startups held preliminary talks to combine their services in the Middle East, with the hop of resolving their costly rivalry. At that time, Uber wanted to own more than half of the combined company and has brought up the acquisition of Careem at that time.
“We believe the consumer internet opportunity in the region is massive and untapped,” Careem stated in an emailed statement.
“In the last couple of years, the rest of the world has begun to embrace this opportunity and we have been approached by multiple strategic and financial investors. Our ambition remains to build a lasting tech institution from the region.”
The startup, Careem has more than one million drivers in the region and operates in more than 100 cities in Bahrain, Saudi Arabia, UAE, Lebanon, Pakistan, Morocco, Jordan, Kuwait, Palestine, Egypt, Iraq, Sudan, and Qatar.
Uber declined to comment on the matter.