Uber’s $3.1 billion agreement to buy Careem consists of $1.7 billion in convertible notes and $1.4 billion in cash.
The Dubai-based Careem, founded in 2012, claims more than 30 million registered users and sells car-hailing services in 120 cities across North Africa, the Middle East, and South Asia, from Morocco to Pakistan.
Uber CEO Dara Khosrowshahi described the acquisition as a “leap” forward for the company.
Khosrowshahi also asserted that they intend to operate the company independently, under the leadership of the CEO and Co-Founder Mudassir Sheikha.
Careem and Uber will continue to operate as independent brands so that growth can be seen not only in one but in two strong brands.
This deal essentially means Careem will become Uber subsidiary. Despite being vague, the press release mentions increased driver utilization, which could potentially indicate captains would be able to drive both Uber and Careem users.
Sheikha, on the other hand, announced on Twitter:
With that being said, this marks the Middle East’s biggest-ever tech buyout!