Uber buys Middle East rival Careem for $3.1bln

Credit: Reuters Studio
Published on March 26, 2019 - Duration: 01:09s

Uber buys Middle East rival Careem for $3.1bln

Uber is buying Middle East rival Careem for $3.1bln, giving the ride hailing app a much needed win after it was forced to divest several units due to heavy losses.

Julian Satterthwaite reports.

Uber buys Middle East rival Careem for $3.1bln

Uber is buying its biggest rival in the Middle East.

The ride hailing firm will acquire Careem for 3.1 billion dollars.

That will give it dominance in the region ahead of a hotly anticipated IPO.

The deal has been long expected.

It ends more than nine months of stop-start negotiations between the companies.

Careem is bigger than Uber in the Middle East, North Africa, Pakistan and Turkey.

Now it becomes a wholly owned subsidiary of Uber.

But its brand and app will remain intact, at least initially.

The deal is expected to close in early 2020.

It could be a much needed win for Uber.

It's been forced to sell operations in China, Russia and Southeast Asia after heavy losses.

That called into doubt its ability to be competitive worldwide.

Now the Careem deal could still be derailed by competition regulators in the Middle East.

Uber expected to provide more details in the filing for its IPO.

The process for that expected to kick off in April.

It should value Uber at around 100 billion dollars.

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