It's official: Uber buys ride-hailing app Careem for $3.1 bln

Dubai's ride-haling app Careem has been acquired by Uber for $3.1 billion, making it the largest buyout of a startup in the Middle East until now.

Under the deal, Careem will become a wholly-owned subsidiary of Uber, but will continue to operate independently, Uber said.

“This is an important moment for Uber, as we continue to expand the strength of our platform around the world,” Dara Khosrowshahi, CEO of Uber, said in a statement.

“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,” he added.

“Joining forces with Uber will help us accelerate Careem’s purpose of simplifying and improving the lives of people, and building an awesome organization that inspires,” said  Mudassir Sheikha, CEO and co-founder of Careem, who will continue to lead Careem even after the acquisition. 
 

Uber will acquire all of Careem's fleet, delivery, and payments across the Middle East region. This includes major markets in Jordan, Saudi Arabia, the United Arab Emirates, Pakistan, and Morocco.

The buyout comes at a milestone moment, according to Sheikha, as the "broader internet opportunity and overall mobility" in the Middle East region is currently huge and untapped, he said.

“We could not have found a better partner than Uber under Dara’s leadership to realize this opportunity,” he added.

The transaction consists of $1.7 billion in convertible notes, and $1.4 billion in cash, while the deal is expected to close out in the first quarter of 2020, according to Uber's statement.

Write to Reem Abdellatif at reem.a@argaam.com