Uber is in advanced talks for acquiring Careem, which is its business rival, as per the reports of Bloomberg.
Bloomberg reported that this deal would be expanding the operations of the ride-hailing service in the Middle East, as per people who are aware on this matter.
The companies might announce a cash-and-stock transaction that worth Careem at nearly $3billion in the weeks to come.
Negotiations are underway and no final deals have been reached so far, as informed by the people.
Careem and Uber representatives denied providing any comment or whatsoever on the matter.
Also Read: Uber to Reportedly Acquire Careem
Both the firms held preliminary talks back in July for merging their ride-hailing services, expecting to resolve the issue of costly rivalry in the region, as informed by sources aware on the matter.
Uber which is a San Francisco based firm is focusing on growth, and in light of that is investing enormously in electric bikes, food delivery, self-driving cars and logistics for a possible initial public offering this year.
Careem which has got its origins in the Gulf region had got the backing of an investment firm owned by Saudi Prince Alwaleed bin Talal and a Japanese e-commerce giant Rakuten Inc. was valued at nearly $1billion in the funding round of 2016, thus making it one of the most valuable technology start-ups in the Middle East.
If Careem gets to acquire Uber than it would be a departure in strategy for Uber.
The firm has conventionally used such agreements to offload the expensive overseas operations and to take stakes in competition, as it did in the countries like Russia, China and Southeast Asia.
Bloomberg further stated that a deal would indicate the commitment of Uber to the Middle East, which has got one of its biggest investors—a Saudi Arabian sovereign wealth fund which is managed by the Saudi Crown Prince Mohammad Bin Salman.
I am a writer/editor at Research Snipers RS-NEWS and its been 2 years working with the company. My specialties are social, business and development news.