Uber Acquires Careem to Grow into the Greater Middle East Region

Uber has announced that it will acquire Careen for USD 3.1 Billion. The deal size consists of $1.7 billion in convertible notes and $1.4 billion in cash. This is Uber's 7th acquisition to date.

Careem is the internet platform for transportation in the greater Middle East region and expanding its services across its platform to include mass transportation, delivery, and payments. Careem has raised a total of USD 771 million in funding to date in seven funding rounds. The company acquired four companies namely Ccammut, RoundMenu, Savaree, and Enwani.

Uber is a global ride-sharing market leader with its presence in almost all continents. Uber raised a total of USD 24.2 billion in funding till date in 22 funding rounds. Uber acquired a total of seven companies including Careem. Other companies acquired by Uber are Jump Bikes, Complex Polygon, Swipe Labs, Geometric Intelligence, Otto and deCarta.

The deal will accelerate the delivery of digital services to people in the greater Middle East region. This fleet can be acheived by the development of a consumer-facing super-app that offers services such as Careem’s digital payment platform called Careem Pay and last-mile delivery called Careem NOW, notes the announcement.

Executive Opinion

Uber CEO, Dara Khosrowshahi, said, "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, said, "Joining forces with Uber will help us accelerate Careem’s purpose of simplifying and improving the lives of people, and building an awesome organisation that inspires. The mobility and broader internet opportunity in the region is massive and untapped, and has the potential to leapfrog our region into the digital future. We could not have found a better partner than Uber under Dara’s leadership to realise this opportunity. This is a milestone moment for us and the region, and will serve as a catalyst for the region’s technology ecosystem by increasing the availability of resources for budding entrepreneurs from local and global investors."

More on Careem’s Acquisition by Uber

According to the announcement, as a part of the transaction, Uber will acquire Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan. The major major markets covered are Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates.

Careem will continue to operate its brand and function as a wholly-owned subsidiary of Uber. Both Uber and Careem will operate in their respective regional services and independent brands in the region. Careem's co-founder and CEO Mudassir Sheikha will continue to lead the Careem business in the greater Middle East region.

The transaction is expected to close in Q1 2020.