Uber completes acquisition of Careem
Uber has confirmed the official close of its acquisition of UAE-based Careem for $3.1 billion, but is still awaiting regulatory approval in Pakistan, Qatar and Morocco before the transaction will close in these three territories.
Across the 12 other countries in which Careem operates, the local ride-hailing company has become a wholly-owned subsidiary of Uber. Regulators in Egypt, Jordan, Saudi Arabia and the UAE among others have approved Uber's acquisition of Careem’s mobility, delivery and payments businesses.
Careem co-founder and chief executive officer (CEO) Mudassir Sheikha will continue to lead the Careem business, which will report to a board made up of three representatives from Uber and two representatives from Careem.
Careem and Uber will operate their respective regional services and independent brands.
“I’m looking forward to seeing even more innovation from Careem, as they continue to operate independently under their current leadership," said Dara Khosrowshahi, CEO at Uber. "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.”
Careem's Sheikha said: "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. Joining forces with Uber accelerates that journey as we become the region's everyday super app. 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."
In joint statement, both companies said they believe this completed acquisition will provide an opportunity to expand the variety and reliability of services offered through their applications. Similarly, for drivers and captains, the companies believe an increase in trip growth and improved services could provide better economic opportunities as well as more predictable earnings through greater utilisation of drivers’ time on the road.