Uber Technologies Inc. is in initial talks with its competitor ride-hailing service Careem Networks FZ to merge their ride-providing services in the Middle East, as per the reports of Bloomberg on Tuesday. Bloomberg also quoted three people who are aware of the matter.
The firms have discussed many probable agreement structures, however, have not reached some final arrangement. Under one of the proposed suggestions Careem’s present leaders would be handling and managing the newly merged business on a daily basis while retaining either one or both firm’s local brands, and another suggestion would be that Uber would acquire the Careem’s Middle Eastern ride-hailing application, as mentioned by the report.
As per the conducted discussions with Careem, Uber said that it would be requiring to own more than half of the merged firm, if not purchase Careem straightaway, according to the report.
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Uber and Careem both were not available for immediate comments when requested to respond.
Careem is a local favourite ride-hailing service and is presently in talks with the investors to raise $500 million, likely valuing the Dubai-based ride-hailing firm at nearly around $1.5 billion. As per earlier reports the firm has said to be in talks with banks regarding a probable IPO in the month of January.
Dara Khosrowshahi—the Chief Executive Officer of Uber said in a conference in May that he is definite that Uber would lead in India, Africa and the Middle East. He further added that they are going to be the leading players in these markers and would be controlling their destiny.
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