Mohammed, Hamdan praise Careem $3.1bn sale to Uber

SAN FRANCISCO, DUBAI 27 March 2019: Uber and Careem have reached an agreement for Uber to acquire Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash.

The acquisition of Careem is subject to applicable regulatory approvals. The transaction is expected to close in Q1 2020.

Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates.

Independent Brand

Upon closing, Careem will become a wholly-owned subsidiary of Uber, preserving its brand. Careem co-founder and CEO Mudassir Sheikha will lead the Careem business, which will report to its own board made up of three representatives from Uber and two representatives from Careem. Careem and Uber will operate their respective regional services and independent brands.

His Highness Sheikh Mohammed‏ bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai said: “In 1999, many people questioned our idea to establish Dubai Internet City in the desert. Two years ago, Amazon acquired the multi-billion dirham Souq.com  and today, Uber acquired Careem for Dh11 billion. These giant companies flourished from the “desert” of Dubai.”

Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince of Dubai stated: “We congratulate Uber and Careem for the deal announced today, the largest in the region’s technology sector. We are delighted to see a major international enterprise acquiring a Dubai-based company for $3.1 billion, and we wish them all the best.”

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

“Joining forces with Uber will help us accelerate Careem’s purpose of simplifying and improving the lives of people, and building an awesome organisation 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. We could not have found a better partner than Uber under Dara’s leadership to realise this opportunity. This is a milestone moment for us and the region, and will serve as a catalyst for the region’s technology ecosystem by increasing the availability of resources for budding entrepreneurs from local and global investors,” said Careem CEO and co-founder, Mudassir Sheikha.

The greater Middle East is already seeing the economic and social benefits of rapid technology adoption and improved access to transportation. This transaction supports the collective ability of Careem and Uber to improve the region’s transportation infrastructure at scale and offer diverse mobility, delivery and payment options. It will speed up the delivery of digital services to people in the region through the development of a consumer-facing super-app that offers services such as Careem’s digital payment platform (Careem Pay) and last-mile delivery (Careem NOW).

Expanded Offering

This transaction brings together Uber’s global leadership and technical expertise with Careem’s regional technology infrastructure and proven ability to develop innovative local solutions. Both companies believe it will provide an opportunity to expand the variety and reliability of services offered, at a broader range of price points to serve more consumers. Similarly, for drivers and captains, the companies believe an increase in trip growth and improved services could provide better work opportunities as well as higher and more predictable earnings through greater utilisation of drivers’ time on the road.

Jefferies LLC acted as exclusive financial advisor to Careem on the transaction.


Uber sent out the following message to all its app users in the region

To a New Chapter

Five years ago, we arrived in the Middle East. It was the start of an incredible journey which has seen millions of riders and drivers find new ways to move and work.

Today, we are proud to announce the next step in our journey: we’ve agreed to acquire Careem, one of the region’s greatest success stories. Uber and Careem will come together to complement each other’s strengths, better serve the region, and maintain a tailored local experience.

Nothing will change for you. Both Uber and Careem will continue to operate as independent apps.

We are excited about what this means for the future of mobility, delivery, and payments in the Middle East, we’re looking forward to continuing the journey together.


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