The deal consisted of $1.7 billion in convertible notes and $1.4 billion in cash. The acquisition – expected to close in Q1 2020 – is subject to applicable regulatory approvals.
This transaction supports the collective ability of the two companies 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 app that offers services such as Careem’s digital payment platform (Careem Pay) and last-mile delivery (Careem NOW).
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. Established in July 2012, the company operates in 120 cities across 15 countries.
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. The two companies will operate their respective regional services and independent brands.