Uber Buys Middle East Rival in $3.1 Billion Deal

March 26, 2019 at 10:22 AM

Uber Technologies Inc. is acquiring Careem Inc., a larger ride-hailing rival in the Middle East and North Africa, for $3.1 billion in cash and convertible notes.

Dubai-based Careem operates in 15 countries and more than 120 cities in North Africa, the Middle East, Pakistan and Turkey. In comparison, Uber operates in two dozen cities in the region.

The purchase will make 7-year-old Careem a wholly owned subsidiary of Uber that continues to operate services under its own brand. Careem also recently added a delivery service. The company’s early investors included Daimler and several Middle East funds.

The companies expect to complete the acquisition, who negotiations began nearly one year ago, in the first quarter of 2020. Over that period, Careem’s market value nearly doubled to more than $2 billion.