Uber’s Chauffeur-driven Vehicle (VTC) specialist will acquire competitor Careem, the VTC specialist in the Middle East / North Africa region. The two groups reached an agreement to buy Careem for $ 3.1 billion, $ 1.7 billion in convertible notes and $ 1.4 billion in cash.
The acquisition of Careem is subject to applicable regulatory approvals. The transaction is expected to close in the first quarter of 2020. Uber will acquire all of Careem’s mobility, delivery and payment activities in the Greater Middle East region, from Morocco to Pakistan, Saudi Arabia, the Arab Emirates united, Jordan and Pakistan. This operation will allow Uber to return to Morocco where the company had stopped its activities for regulatory reasons.
Uber is present in 70 countries, while Careem has a strong presence in the Middle East / North Africa / Turkey / Pakistan region (98 cities in total).