Uber buys Careem in $3.1 billion deal

123rf

Global ride-hailing firm Uber has confirmed it will spend $3.1 billion to acquire Middle East rival Careem.

In a statement released on Tuesday morning, Uber said it would pay $1.4 billion in cash and $1.7 billion in convertible notes.

Following the acquisition, Careem will remain independent, keeping its brand and app intact. 

Careem co-founders Mudassir Sheikha, Magnus Olsson and Abdulla Elyas will stay on, but its board will be overhauled, with three seats going to Uber representatives and two remaining with the Middle East firm. 

The deal is expected to close in the first quarter of next year following regulatory approvals.

Vitali Bielski, Senior Consultant - Mobility Practice at Frost & Sullivan told ARN News that the mega-deal puts the spotlight on the Middle East’s startup sector.

More from Business

  • Sheikh Maktoum meets Bank of America's Bernard Mensah

    Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, has explored opportunities for cooperation in the banking sector during talks with Bernard Mensah, President of International for Bank of America.

  • Small AI models near self-replication, Anthropic warns

    Small AI models may be only months away from being able to copy themselves onto everyday internet-connected devices, such as smart ovens and cheap Android TV boxes, according to research published by Anthropic on Monday.

  • H.H. Sheikh Hamdan praises progress of Dubai Cashless Strategy

    His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, has praised the progress of the Dubai Cashless Strategy, with cashless transactions now accounting for 90.1 per cent of all transactions in the Emirate.

  • DIEZ doubles size of Oraseya Capital fund to AED1 billion

    The Dubai Integrated Economic Zones Authority (DIEZ) has announced the doubling of the venture capital fund managed by its investment arm, Oraseya Capital, from AED500 million to AED1 billion.

Recently Played

Weather

  • Wed

    37°C

  • Thu

    37°C

  • Fri

    38°C

  • Sat

    38°C

Podcasts