Careem

As of June 22, 2017, Careem is a passenger transportation company. It was founded in 2012.

History

2019: Uber bought Careem Networks for $3.1 billion

On March 26, 2019, Uber Technologies announced the acquisition of Careem Networks for $3.1 billion. With this deal, the buyer will be able to become the dominant player in the Middle East market for online taxi ordering services.

Uber will pay for the takeover of Careem from its own funds ($1.4 billion) and with the help of convertible bonds ($1.7 billion). The latter will be transferred after the closure of the transaction, scheduled for the first quarter of 2020.

Uber bought an Arab rival for $3.1 billion - Careem

Under the terms of the agreement, Careem will become a 100 percent "daughter" of Uber, but will retain its brand and application - at least for the first time. Careem co-founders Mudassir Sheikha, Magnus Olsson and Abdulla Elyas will remain with the company. At the same time, the board of directors will be significantly updated: it will include three representatives from Uber, and Careem will appoint two members.

It is noted that Uber buys all Careem shares from external investors, and the shares of the Arab company will be converted into Uber's share capital.

By March 2019, Careem is present in 98 cities in the Middle East, North Africa, Pakistan and Turkey, whereas Uber operates in 23 cities in those regions.

Uber CEO Dara Khosrowshahi in a letter to employees, the text of which is posted on the company's website, noted that the Middle East is very important for the company.

According to Reuters sources, negotiations on the sale of Careem to Uber have been going on since at least the summer of 2018, but they became serious only by the end of the year. In 2018, Careem rapidly developed its business, including launching a delivery service, and almost doubled its value, forcing Uber to increase its price offer.^[1]

2018: $2 billion valuation

In October 2018, investors valued Careem at $2 billion, and the total investment in the company amounted to a little less than $800 million. Investors included Daimler, Didi Chuxing, Rakuten and Saudi Prince Al-Waleed bin Talal's investment company.

Notes