Uber confirmed the official close of the previously announced acquisition of Careem for $3.1 billion making it Uber’s wholly-owned subsidiary. Careem co-founder and CEO Mudassir Sheikha will continue to lead the Careem business. The business will report to a board made up of 3 representatives from Uber and 2 representatives from Careem. Careem and Uber will operate their respective regional services and independent brands.
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 United Arab Emirates. 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 are obtained.
Both companies believe this completed acquisition will provide an opportunity to expand the variety and reliability of services offered through their applications. Similarly, for drivers and captains, the companies believe an increase in trip growth and improved services could provide better economic opportunities as well as more predictable earnings through greater utilization of drivers’ time on the road.
According to a report on Forbes, the shared economy has grown from $15 billion in 2014 and is projected to grow to $335 billion in 2025. The demand for apps that use the shared economy to solve time and congestion-related challenges in the urban centers will only continue to grow, while rural areas will look for way to resource share, reduce costs and increase efficiencies.