São Paulo – The transportation company Uber, based in the United States, announced the acquisition of Careem, based in Dubai, which provides the same service in the Middle East. The purchase for USD 3.1 billion is subjected to regulatory approval in several countries and should be concluded by the first quarter of 2020. It will be the largest transaction in industry and technology in the region.
Careem will become an Uber subsidiary but will keep its brand. The American company will acquire all Careem’s mobility, delivery and payment businesses in the Middle East, from Morocco to Pakistan. The main markets in the region are Egypt, Jordan, Pakistan, Saudi Arabia and the UAE. Careem and Uber will operate their own regional services and independent brands.
“Careem has played a key role in shaping the future of urban mobility across the Middle East, becoming one of the most successful startups in the region. I’m confident we will deliver exceptional outcomes for riders, drivers and cities in this fast-moving part of the world,” said Uber CEO Dara Khosrowshahi according to Uber release.
“This is a milestone moment for us and the region and will serve as a catalyst for the region’s technology ecosystem by increasing the availability of resources for budding entrepreneurs from local and global investors,” said Careem CEO and co-founder Mudassir Sheikha in Uber release.
Uber was founded in 2010 in San Francisco and started operations in Dubai five years ago. Now, with more than 10 billion travels around the world, Pakistan is one of fastest growing markets of the company.
Careem is a mobile app for the greater Middle East and is now expanding its services to include mass transportation, deliveries, and payments. Founded in July 2012, Careem operates in 120 cities of 15 countries and has created more than one million economic opportunities around the region.
Translated by Guilherme Miranda
