A Milestone For the MENA Startup Ecosystem: Uber Acquires Careem For US$3.1 Billion The deal will see Careem becoming a wholly owned subsidiary of Uber, though Careem will continue to operate independently under the leadership of current CEO and co-founder Mudassir Sheikha.

By Aby Sam Thomas

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

Careem

It's official: Uber is buying Careem for US$3.1 billion.

The acquisition of the Dubai-born Careem by the San Francisco-headquartered Uber is expected to close in the first quarter of 2020, with the transaction consisting of $1.7 billion in convertible notes, and $1.4 billion in cash.

The deal will see Careem becoming a wholly owned subsidiary of Uber, though Careem will continue to operate independently under the leadership of the company's current CEO and co-founder, Mudassir Sheikha.

"This is an important moment for Uber, as we continue to expand the strength of our platform around the world," said Dara Khosrowshahi, CEO, Uber, in a statement.

"With a proven ability to develop innovative local solutions, Careem has played a key role in shaping the future of urban mobility across the Middle East, becoming one of the most successful startups in the region," Khosrowshahi noted. "Working closely with Careem's founders, I'm confident we will deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world."

Source: Careem

Commenting on the acquisition, Sheikha said, "Joining forces with Uber will help us accelerate Careem's purpose of simplifying and improving the lives of people, and building an awesome organization that inspires."

"The mobility and broader internet opportunity in the region is massive and untapped, and has the potential to leapfrog our region into the digital future," he added. "We could not have found a better partner than Uber under Dara's leadership to realize this opportunity."

Uber's buy-out of Careem is now the largest acquisition of a startup seen in the Middle East so far, with the deal amount surpassing Amazon's reported $580 million purchase of Souq in 2017.

Careem, which was launched in Dubai in 2012, today operates in 120 cities across 15 countries.

Related: Careem: It's Full Speed Ahead For This Middle East Startup

Aby Sam Thomas

Entrepreneur Staff

Editor in Chief, Entrepreneur Middle East

Aby Sam Thomas is the Editor in Chief of Entrepreneur Middle East. In this role, Aby is responsible for leading the publication on its editorial front, while also working to build the brand and grow its presence across the MENA region through the development and execution of events and other programming, as well as through representation in conferences, media, etc.

Aby has been working in journalism since 2011, prior to which he was an analyst programmer with Accenture, where he worked with J. P. Morgan Chase's investment banking arm at offices in Mumbai, London, and New York. He holds a Master's Degree in Journalism from the Columbia University Graduate School of Journalism in New York.  

Business News

Woman Goes Viral After Recording Her Disastrous Call With HR After Being Let Go: 'They Tried to Gaslight You'

Brittany Pietsch posted a nine-minute-long clip of her firing from Cloudflare on TikTok, and it went viral. The company's CEO responded on X — and also went viral.

Business News

I Live on a Cruise Ship for Half of the Year. Look Inside My 336-Square-Foot Cabin with Wraparound Balcony.

I live on a cruise ship with my husband, who works on it, for six months out of the year. Life at "home" can be tight. Here's what it's really like living on a cruise ship.

Growth Strategies

Building Tomorrow: Dubai's Museum Of The Future And Visa Have Embarked On A Mission To Create Thriving Communities

The partnership supports Dubai's and the global community's acceleration towards readiness for the future, demonstrating the museum and Visa's joint commitment to showcasing game changing technologies and concepts.

Business News

Shopify's 'Cost Calculator' Exposes the Price of (Probably Pointless) Meetings: 'Time Is Money'

The calculator estimates the cost of meetings based on factors such as average compensation, meeting length, and attendee count.

Marketing

4 Ways AI Is Revolutionizing Targeted Advertising — And How to Balance It's Ethical Implications

AI-powered targeted advertising revolutionizes marketing with hyper-personalized promotions. However, ethical and transparency questions hover over this progress.