According to
a report of Bloomberg, Uber is considering to acquire its Dubai-based rival
Careem Network FZ.
According to
Bloomberg this deal will expand the ride-hailing giant’s operations in Middle East;
people familiar with this matter report the same.
Careem is valued about $3 billion, and in coming weeks both companies will tie in a deal to transact cash-and-shares transfer, people reporting this asked not to be mentioned because the talks are held privately.
Negotiations
are in process and they have not reached on final agreements. Representatives
of both Uber and Careem declined to say anything about this matter.
Uber, a
giant ride-hailing company based in San Francisco, is emphasizing growth. It is
aggressively investing in electric bikes, logistics, self-driving cars, and food
delivery, as it is preparing to go public by issuing potential IPO (initial
public offering) this year.
Careem was
valued at $1 billion in 2016, and it is backed by Saudi Prince Alwaleed bin
Talal’s investment firm and Rakuten Inc. (Japanese e-commerce giant). The
company has more than a million drivers and operating in more than 100 cities
in the Middle East, according to its website.
Acquiring a
rival is a result of Uber’s strategy of departure. The company has
traditionally opted such deals in China, Russia, and Southern Asia to take risk
against its rivals. Uber has committed to launch its operations in Middle East
as its biggest investor, Crown Prince Mohammad bin Salman, is based in Saudi
Arabia.
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