Uber in talks to acquire Careem

September 18, 2018 (MLN):  Uber Technologies Inc. is in talks with its Dubai based rival, Careem Networks, to acquire the latter as it expands in the Middle East.

Careem’s management is reportedly interested is striking the deal and is trying to convince its shareholders for an affirmation. The deal could provide benefits worth $2 billion to $2.5 billion, to Careem.

A recent emailed statement from Careem read, “We believe the consumer internet opportunity in the region is massive and untapped. In the last couple of years, the rest of the world has begun to embrace this opportunity and we have been approached by multiple strategic and financial investors. Our ambition remains to build a lasting tech institution from the region.”

Previously, in July, the two companies held preliminary discussions to merge their services in the Middle East to avoid an expensive competition. Uber had then wanted to own more than half of the combined company and even considered buying Careem at the time.

However, no decision regarding a merger or an acquisition has been taken as yet, and the companies may also decide to shelf the idea altogether.

With above a million drivers, Careem currently operates in more than 100 cities in United Arab Emirates, Qatar, Saudi Arabia, Bahrain, Lebanon, Pakistan, Kuwait, Egypt, Morocco, Jordan, Turkey, Palestine, Iraq and Sudan.

Copyright Mettis Link News

Posted on: 2018-09-18T16:53:00+05:00