Careem

For June 22, 2017 Careem is the company in the field of passenger traffic. It is founded in 2012.

History

2019: Uber purchased Careem Networks for $3.1 billion

On March 26, 2019 Uber Technologies announced acquisition of Careem Networks for $3.1 billion. Thanks to this transaction the buyer will be able to become the dominating player in the Middle Eastern market of online services of the order of the taxi.

Uber will pay merger of Careem from own means ($1.4 billion) and by means of convertible bonds ($1.7 billion). The last will be transferred after the closing of the transaction planned for the first quarter 2020.

Uber purchased the Arab competitor for $3.1 billion — Careem company

On terms of agreement, Careem will become 100 percent "subsidiary" of Uber, but will save the brand and the application — at least at first. Cofounders of Careem Mudassir Sheikha, Magnus Olsson and Abdulla Elyas will remain in the company. At the same time Board of Directors it will be essential it is updated: three representatives from Uber, and Careem will enter into it will appoint two members.

It is noted that Uber redeems all shares of Careem from external investors, and stocks of the Arab company will be converted into capital stock of Uber.

By March, 2019 Careem is present at 98 cities of the Middle East, North Africa, Pakistan and Turkey whereas Uber works in 23 cities of these regions.

The CEO of Uber Dara Hosrovshakhi in the letter to the employees which text  is uploaded  to the website of the company, noted that the Middle East is very important for the company.

According to sources of Reuters, negotiations on sale of Careem of Uber company were conducted at least since summer in 2018, but they became serious only by the end of the year. In the 2018th Careem promptly developed business, including having started delivery service of goods, and almost doubled the cost, having forced Uber to raise the offer on the price.^[1]

2018: Assessment in $2 billion

In October, 2018 investors estimated Careem at $2 billion, and the total amount of investments in the company was the little less than $800 million. Daimler, Didi Chuxing, Rakuten and investment company of the Saudi prince Alwaleed bin Talal were among investors.

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