● Careem to become a wholly-owned subsidiary of Uber, operating as an
independent company under the Careem brand and led by Careem founders
● Opportunity for both companies to rapidly expand and capitalise on the
region’s underpenetrated mobility opportunity and growing digital economy
● Transaction would be largest-ever technology industry transaction in the
greater Middle East region
March 26, 2019, SAN FRANCISCO AND DUBAI — 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 region, ranging from Morocco to Pakistan, with major markets including
Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates.
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.
“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 region 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).
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.