Tech Brief: Uber Acquires Middle East Rival Careem for US$ 3.1 Billion

Ride-hailing service Uber has announced that it's acquiring Middle East competitor Careem in a deal worth US$ 3.1 billion, confirming earlier rumours of an imminent acquisition. Dubai-based Careem, which is popular in markets like Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates, will "become a wholly owned subsidiary of Uber, operating independently with its own brand and services," with its co-founder and CEO Mudassir Sheikha set to lead the Careem business, which will report to its own board made up of three representatives from Uber and two representatives from Careem. The acquisition comes at a crucial juncture as Uber is readying for a much-anticipated initial public offering that could value the firm as much as US$ 120 billion, making it one of the biggest tech IPOs in history. Uber, which acquired bike-share startup JUMP last April, is yet to turn profitable, with the company reporting a loss of US$ 1.8 billion as of December 2018.