After several months of negotiations, Uber announced the purchase of its Dubai-based competitor, Careem, for $3.1 billion. An acquisition, which a few months before Uber’s IPO, strengthens the American giant’s presence in the Middle East.
Nine months later, the deal was concluded. Earlier this week, the American transport company Uber announced the acquisition of its Dubai-based competitor Careem for a total amount of $3.1 billion, which is a strategic acquisition considering the upcoming Uber’s IPO. With this agreement giving him the full authority of Careem, Uber is expanding its position in the Middle East.
To ease the transition and reassure Careem’s customers, Uber announced that it wanted to preserve the Dubai brand by keeping the co-founders, Mudassir Sheikha, Magnus Olsson and Abdulla Elyas, within the new company.
A takeover putting an end to competition
Despite its activity in more than 70 countries, Uber was struggling to establish itself in the Middle East, unlike Careem. If the transaction is not formally completed until the first quarter of 2020, the takeover will put an end to the fierce competition that existed between the two VTC (chauffeur-driven transport car) platforms.