Uber completes acquisition of Careem

Published January 3, 2020
The regulatory approval process in Pakistan is ongoing after which the transaction will close in the country. — Photo courtesy Careem
The regulatory approval process in Pakistan is ongoing after which the transaction will close in the country. — Photo courtesy Careem

Uber on Friday confirmed the official close of the acquisition of Careem for $3.1 billion.

According to a press release from Uber, "Careem Networks FZ-LLC has become a wholly-owned subsidiary of Uber, preserving its brand".

The statement said that 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 continue to operate their respective regional services and independent brands.

Read | Uber Eats Careem: Apprehensions trump hopes as ride hailing services announce merger

With the finalisation of the deal, Uber has acquired Careem’s mobility, delivery, and payments businesses across the greater Middle East region, with major markets including Egypt, Jordan, Saudi Arabia, and the United Arab Emirates.

"The regulatory approval process in Pakistan, Qatar, and Morocco is ongoing and the transaction will not close in these territories until approvals from the legal authorities responsible are obtained," said the statement.

Uber CEO Dara Khosrowshahi said: “I’m looking forward to seeing even more innovation from Careem, as they continue to operate independently under their current leadership. 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.”

Sheikha expressed his contentment on the occasion.

"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," said the Careem co-founder.

Both companies believe that the acquisition will lend them the opportunity to "expand the variety and reliability of services offered through their applications", said Uber in its statement.

Drivers and captains will see better economic opportunities with an increase in trip growth and improved services. They will be able to benefit from "more predictable earnings" through greater utilisation of their time on the road, added the statement.

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