Uber acquires its competitor ride hailing app Careem

Uber has announced that it has reached an agreement with Careem to acquire it for $3.1bn, consisting of $1.7bn in convertible notes and $1.4bn in cash. The acquisition of Careem is subject to applicable regulatory approvals. The transaction is expected to close in Q1 of 2020.

Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates. Upon closing, Careem will become a wholly-owned subsidiary of Uber, preserving its brand.

Careem co-founder and CEO, Mudassir Sheikha, will lead the Careem business, which will report to its own board composed of three representatives from Uber and two representatives from Careem. Careem and Uber will operate their respective regional services and independent brands.