Uber confirms it’s acquiring Middle East rival Careem for $3.1 billion

Uber, the transportation network company, has confirmed it is acquiring Dubai-based ride-hailing service Careem. This move will help Uber's expansion into the Middle East, Africa and Asia. The deal is worth $3.1b via a combination of $1.4b in cash and $1.7b in convertible notes.

 

With Uber preparing for its upcoming IPO, the San Francisco-based company is seeking new avenues for growth, and Careem offers exactly that.

 

Although Uber is the largest global ride-hailing firm it has struggled with some key markets where local firms have strong user loyalty. Although Uber is acquiring Careem, the company will continue to operate independently, showing the strength of its brand with its customers. 

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