Ride-hailing giant Uber has completed the acquisition of Dubai-based popular Mideast app Careem after long-running negotiations. Uber and Careem have reached a final deal which is for Uber to acquire Careem for $3.1 billion, the $1.7 billion of the total amount will be in convertible notes and remaining $1.4 billion will be in cash. The transaction is expected to close in the first quarter of 2020.
Uber announced that they are buying Careem, a rival ride-sharing service that operates across 98 cities which includes major Middle Eastern, South Asian, and African. Uber will acquire all of Careem’s delivery, and payments businesses across the greater Middle East region with significant markets including Saudi Arabia, United Arab Emirates, and Pakistan.
The deal would consolidate Uber’s hold on the ride-hailing market as Uber have previously bought many of its rivals to end the price wars in different regions. According to the sources the Careem will keep operating under the old brand name and with the own board which will consist of three representatives from Uber and two representatives from Careem.
According to all the industry analysts, Uber’s this move will help it to cut down the burden of its losses, by acquiring the major Middle East Uber can now also operate in countries like Iraq, Palestine, and Morocco, where Uber was not allowed.