Uber to Acquire Careem !
“SAN FRANCISCO AND DUBAI — Uber and Careem have reached an agreement for Uber to acquire Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash. The acquisition of Careem is subject to applicable regulatory approvals. The transaction is expected to close in Q1 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.
Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 10 billion trips later, we’re building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.
Careem is the internet platform for the greater Middle East region. A pioneer of the region’s ride-hailing economy, Careem is expanding services across its platform to include mass transportation, delivery and payments. Careem’s mission is to simplify and improve the lives of people and build a lasting organisation that inspires. Established in July 2012, Careem operates in 120 cities across 15 countries and has created more than one million economic opportunities in the region.
investor place website wrote ” 14 Things to Know About the Careem Deal “
- This deal has Uber acquiring the ride-sharing company, which operates in the Middle East.
- Uber is paying a total of $3.10 billion for the company, but not all in cash.
- Instead, $1.7 billion of the payment will be in the form of convertible notes.
- The remaining $1.4 billion that makes up the deal will be in cash.
- This Uber news will have the Middle East company becoming a wholly-owned subsidiary of Uber.
- Uber notes that it will continue to operate Careem in the Middle Easter under its current brand.
- It also points out that the leaders of Careem will also continue to manage the company.
- This will leave CEO and co-founder Mudassir Sheikha as the head of the company.
- Sheikha will continue to report to Careem’s Board of Directors following the close of the deal.
- This board will be made up of five individuals.
- Three of the Directors on this Board will be appointed by Uber.
- The remaining two members will be from Careem.
- Uber and Careem note that they are expecting the acquisition deal to close during the first quarter of 2020.
- However, they will need to get approval from regulators first.