Uber Buys Careem

Uber buys Careem.
   
Uber buys Careem for $1.4 billion cash and $1.7 billion convertible notes in a $3.1 billion deal.  The notes are convertible to Uber shares at $55 each.
   
Careem converts to a division of Uber, keeping its brand and app intact.  Careem and Uber will run their respective local services and individual brands distinctly.  This lets them build new products and try new ideas across two brands with two operators at the same time.  Co-founders Mudassir Sheikha, Magnus Olsson, and Abdulla Elyas stay on with the firm.
    
Careem said it best: ‘Today, we start Chapter 2 of our story.  Careem is joining forces with Uber to better serve the region.  We will operate independently so the app, services, and brand you love will continue to be available as usual.’
   
The $3.1 billion deal buys out all external Careem investors.  This includes Daimler, Didi Chuxing, Rakuten, Kingdom Holding, Al Tayyar, Saudi Telecom, Wamda, and Saudi Technology Ventures.
   
Uber buys all Careem’s mobility, delivery, and payments businesses in 98 cities across the greater Middle East, from Morocco to Pakistan.  Major markets are Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates.
    
Dara Khosrowshahi of Uber said: ‘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 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.’
    
Mudassir Sheikha of Careem said: ‘Joining forces with Uber will help us speed up Careem's purpose of simplifying and improving the lives of people and building an awesome organization that inspires.  The mobility and broader internet opportunity in the region are massive and untapped and have 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 realize 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.’
   
Jefferies acted as exclusive financial adviser to Careem.

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