Uber completes $3.1 billion acquisition of Careem
Back in March 2019, Uber announced its acquisition of ride-hailing startup Careem for $3.1 billion. Last week, Uber finally completed the acquisition after completing various regulatory requirements. As part of the acquisition, Careem Networks FZ-LLC became a wholly-owned subsidiary of Uber, preserving its brand. In addition, Careem co-founder and 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,” Uber CEO Dara Khosrowshahi said. “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.”
Founded in 2012, Careem claims to have 30 million registered users in over 120 cities in the Middle East, North Africa, Turkey and Pakistan. The company, which counts German car maker Damler and China’s largest ride-hailing company DiDi Chuxing among its backers, is Uber’s largest rival in the region.
Careem co-founder and CEO Mudassir 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.”
Uber noted the regulatory approval process for the deal is ongoing in Pakistan, Qatar and Morocco, and the deal will not close in those regions until approvals are received.