In a small post by Careem, the company has announced that it is joining forces with its rival ride-hailing service, Uber. Read the post below:
“We have reached an agreement in which Uber will acquire Careem for $3.1 billion.
Careem will become a wholly owned subsidiary of Uber, operating independently with its own brand and services. Careem will retain the name, app, branding and everything you love about us – we’re here for you.
Across our fast-growing, young and vibrant region, we are seeing the transformative impact of technology on mobility and improved services. Joining forces with Uber accelerates our collective ability to improve the region’s transportation infrastructure at scale and offer diverse mobility, delivery and payment options.
Uber has achieved great success in the region and shares our ambitions to have a positive impact in the communities we serve. We’re excited about what we can achieve together.
We are still Careem, driven by our purpose – to simplify and improve lives and create an awesome organisation that inspires.”
America’s ride-hailing company, Uber, is reportedly buying its rival Careem for US $3.1 billion.
As per the report published by Bloomberg, the deal will be finalized in the current week. Uber will give $1.4 billion in cash while the remaining sum in the form of convertible notes for the Careem which are stock each worth $55. Experts are hailing this deal as one of the biggest deals in the middle-east region.
It is imperative to mention here that Uber, as per the media reports, is going for its initial public offering in April 2019 and it is estimated that the value of the company will be as much as $120 billion. The shareholders of Careem has been directed to give their green signal to the terms and conditions of the transaction so that all the procedures can move further and without any problem.
Moreover, aside from the news of Uber buying Careem, recently in Pakistan a ban has been placed on both ride-hailing services from entering Jinnah International Airport, Karachi. The official warning sign authorized by the COO/Airport Manager can be easily noticed at the entrance of the airport, which contains the following warning:
“The vehicles of Uber and Careem are prohibited from entering the parking area and pick up passengers from the airport. In case of violation, strict action will be taken including impounding of vehicles.” Previously, both of these ride-hailing services were banned by the management of Allama Iqbal International Airport, Lahore.
The Dubai-based ride-hailing service, Careem, founded back in 2012, is operating over 100 cities around the globe serving millions of people every year.
Uber is evolving the way the world moves through its app. By seamlessly connecting riders to drivers at the push of a button, we make cities more accessible, opening up more possibilities for riders and more business for our partner drivers and transport operators. Uber’s rapidly expanding global presence continues to bring people and their cities closer and is currently providing service in more than 600 cities across 77 countries on six continents.
Tell us what you guys think about Uber and Careem becoming a single unit, and what will be effects of this on our country in the comments section below.