Careem was launched in Dubai in 2012.
PHOTO BY ARCHIVE
DUBAI – Ride-hailing service provider Uber is set to acquire Dubai-based rival Careem for $3.1 billion, sources close to the discussion said.
Uber will reportedly announce the acquisition this week, or as early as Tuesday.
According to Bloomberg, Uber will pay $1.4 billion in cash and $1.7 billion in notes convertible into Uber shares at $55 per share.
Representatives of Uber or Careem did not immediately respond to requests for comment on the reported acquisition, which comes ahead of Uber’s IPO next month.
Uber is listing its shares on the New York Stock Exchange and its IPO is expected to value at $120 billion.
Careem is popular in the UAE and the region and was launched in Dubai in 2012 by Mudassir Sheikha and fellow McKinsey & Co alumni Magnus Olsson.
The Dubai start-up has more than a million drivers and is reportedly valued at over $2 billion in its last funding round when it raised $200 million. GAD/Expat Media
Turn your Uber ride in Dubai into a flight
Imam’s daughter dies in Ras Al Khaimah car crash
Learn how to take food photos like a pro in Dubai
Change in speed limit on key Fujairah highway
Dubai airport crash results: all you need to know