Uber Technologies, a San Francisco-based transportation network company, has announced the official close of its acquisition of regional rival Careem in a $3.1-billion deal.
With the closing of the deal, Uber has acquired Careem’s mobility, delivery, and payments businesses across the greater Middle East region, with major markets including Egypt, Jordan, Saudi Arabia, and the UAE, said the company in a statement.
The regulatory approval process in Pakistan, Qatar and Morocco is ongoing and the transaction will not close in these territories until approvals from the legal authorities responsible are obtained.
With this deal, Careem Networks has become a wholly-owned subsidiary of Uber, preserving its brand, said its to official.
Co-founder and CEO Mudassir Sheikha will continue to lead the Careem business, which will report to a board made up of three representatives from Uber and two representatives from the latter.
Careem and Uber will both operate their respective regional services and independent brands.
Uber CEO Dara Khosrowshahi said: "I am looking forward to seeing even more innovation from Careem, as they continue to operate independently under their current leadership."
"Working in parallel, our two platforms will be able to build upon the unique strengths of each, to the benefit of drivers, riders, and the cities we serve across the greater Middle East," remarked Khosrowshahi.
On the deal, Sheikha said: "Today marks the beginning of a new chapter for Careem. The journey that we started almost a decade ago to simplify the lives of people in the greater Middle East is far from over."
"Joining forces with Uber accelerates that journey as we become the region's everyday super app. We are excited to take Careem to new heights alongside Uber, who appreciates the significant regional opportunity, is supportive of our values and culture, and believes in the purpose that drives us," he added.