It Is Official Now – Uber Is Acquiring Careem For $3.1 Billion

Uber buys Careem
Courtesy: The Verge
  1. It is confirmed now the Uber is acquiring Careem for $3.1 Billion after both the companies have mutually agreed on this acquisition that will comprise of $1.7 Billion in convertible notes and $1.4 Billion in cash. The entire acquisition process of Careem by Uber is subject to the regulatory approvals wherever applicable. It is expected that the entire transaction will be closed in the first quarter of 2020.

Acquisition Process

This process of acquisition by Uber includes Careem’s mobility, payments, and delivery businesses all across the greater Middle East region. If we look at the footprint of Careem’s operations, it is note-worthy that Careem had been operating in the region from Morocco to Pakistan with major markets including Jordan, Egypt, Saudi Arabia, and the United Arab Emirates.

After the entire acquisition process, Careem will be an owned subsidiary of Uber. It is an acquisition process not a merger thus Careem will be operating as a complete brand under Uber. The co-founder and CEO of Careem, Mudassir Sheikha will be leading Careem business and will be reporting to its own separate board of committee that will consist of three representatives from Uber and two from Careem. Uber and Careem will continue to operate in their respective regional services as individual brands.

Uber buys Careem
Courtesy: ARY News

Future Prospects

Uber and Careem have been playing an important role in improving the general public access to transportation and the greater Middle East region have already witnessed the social and economic benefits via technology and smartphones applications. This transaction will support the collective collaboration of Uber and Careem in improvising the region’s transportation infrastructure at a greater scale and will provide diverse opportunities of mobility, payments, delivery, and other services to the masses. It is a digital era where services can now be availed by the customers with just a click. All of these advancements are only possible after the development of consumer-facing application providing services such as Careem’s revolutionary digital payment platform (Careem Pay) and last-mile delivery (Careem NOW).

This transaction is eyed in the global market as a contract that will bring together Uber’s worldwide leadership and technical expertise with Careem’s regional technology infrastructure and footprint and its demonstrated capacity to develop and deploy inventive and adaptive indigenous solutions. Both these brands are a staunch believer of providing opportunities for network expansion in order to offer a diverse range of reliable digital services to the public in an economical way. The two companies aim to engage more customers by offering affordable and reachable services. On the other side, the companies believe in trips growth and improved services for the drivers and captains thus, ensuring provisioning of better work opportunities of earnings by increasing drivers’ utilization time on the roads.

This acquisition is a win-win transaction for the companies, customers and the captains. These digital giants are working in the region in order to make the access of digital services easy for the general public and is a source of providing earning prospects to the people.