Uber has officially closed the $3.1 Bn acquisition of Careem. A Dubai-headquartered ride-hailing app, Careem, has now become a completely-owned subsidiary of Uber, however, it continues to preserve its brand even after the acquisition by Uber.
Mudassir Sheikha, Co-founder and CEO, Careem, will continue to lead the Careem business which would be reporting to a board that comprises of three representatives from Uber and two from Careem. As per the terms of the acquisition deal, both Uber and Careem will continue to operate their respective regional services and independent brands.
However, Uber has acquired the mobility, delivery, and payments businesses of Careem across the greater Middle Eastern countries which include markets such as Egypt, Jordan, Saudi Arabia, and the United Arab Emirates (UAE).
“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 with Uber accelerates that journey,” said Mudassir Sheikha. “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.”
For drivers and captains, the acquisition is designed to provide an increase in trip growth, more predictable earnings and optimal utilization of drivers’ time on the road.
Founded in 2012, Careem operates in 120 cities across 15 countries and has created about one million employment opportunities.
“I’m looking forward to seeing even more innovation from Careem, as they continue to operate independently under their current leadership,” said Dara Khosrowshahi, CEO, Uber. “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.”