Uber has confirmed that it is acquiring its Middle East rival Careem in a deal worth USD 3.1 billion.
Careem was founded in 2012 as a ride-hailing service. Over the years, it expanded its services to include food and package delivery, bus services, and credit transfers, TechCrunch reported.
Uber said that the deal is expected to close in Q1 2020, subject to applicable regulatory approvals.
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.
After the acquisition is complete, Careem will become a wholly-owned subsidiary of Uber. It will report to its own board made up of three representatives from Uber and two from Careen.
Both the companies will operate their respective regional services and independent brands.