Uber to Reportedly Acquire Careem

It is being reported that Uber is in talks to acquire Careem Networks FZ. According to Bloomberg Uber might acquire Careem for around $2 billion to $2.5 billion.

Presently the talks between two leading ride-hailing companies are being held in private and no final decision has been made. There is also a chance that the companies might decide against the deal.

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Careem is trying to convince Uber representatives regarding Careem’s merits of the deal. In July Uber and Careem held initial talks to combine their services in the Middle East.

Careem in an emailed statement said, “We believe the consumer internet opportunity in the region is massive and untapped.”

Bloomberg quoted, “In the last couple of years, the rest of the world has begun to embrace this opportunity and we have been approached by multiple strategic and financial investors. Our ambition remains to build a lasting tech institution from the region.”

Careem has not commented about this deal and Uber did not instantly respond. Uber has been looking for new projects and avenues for growth and development. The company also started food delivery, freight hauling, electric bike service JUMP Bikes etc.

The majority stakeholder in Uber, Softbank is working on the likelihood of acquiring other ride-hailing assets across Asia. Presently Softbank has stakes in Grab, Singapore based company, and Ola, an Indian based ride-hailing company.

Softbank initially wanted Uber to keep its focus in USA, Europe, Latin America, and Australia Asia was not in the list, but now if the deal between Uber and Careem works, Uber will gain popularity in Asia as well.

Currently, Careem has over a million drivers in the UAE, Qatar, Saudi Arabia, Bahrain, Lebanon, Pakistan, Kuwait, Egypt, Morocco, Jordan, Turkey, Palestine, Iraq, Sudan, and other countries.

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