Almost 300 Careem employees will become millionaires as a result of Uber acquisition

[Zibago]

4 mins ago by Jehangir Nasir

Uber is in advanced talks to buy its Dubai-based rival Careem, reported Bloomberg.

According to Bloomberg, this deal would expand the ride-hailing giant’s operations in the Middle East, according to people familiar with the matter.



The companies may announce a cash-and-stock transaction that values Careem at about $3 billion in the coming weeks, the report said.

Negotiations are ongoing and no final agreements have been reached, the people said. Both the Representatives for the Uber and Careem declined to comment.

Uber and Careem held preliminary talks in July to combine their Middle Eastern ride-hailing services, hoping to resolve a costly rivalry in the region, people familiar with the matter said at the time.

San Francisco-based Uber is emphasizing growth, investing aggressively in food delivery, logistics, electric bikes and self-driving cars, as it prepares for a potential initial public offering this year.

Careem, whose backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce giant Rakuten Inc., was valued at about $1 billion in a 2016 funding round, making it one of the most valuable technology startups in the Middle East.

The company has more than a million drivers (they call them captains) and operates in more than 100 cities in the Middle East, according to its website.

Acquiring a rival would be a departure in strategy for Uber.

The company has traditionally used such deals to offload costly overseas operations and take stakes in competitors, as it did in China, Russia and Southeast Asia.

A deal would signal Uber’s commitment to the Middle East, where one of its biggest investors, a Saudi Arabian sovereign wealth fund overseen by the divisive Crown Prince Mohammed bin Salman, is based stated Bloomberg.
https://propakistani.pk/2019/03/01/...ZssBjmEpgT8but0TmPNjwN_PGkpukIDTOlZg-n3GJcHC0

 

[WebMaster]

Monopoly in the making.

 

[Shahzaz ud din]

Uber to acquire Careem for 3.1 billion dollars
By TechJuice on March 24, 2019 - Like us now!

Bloomberg reports that the acquisition is expected to be made official early next week. The agreed amount of acquisition is 3.1 billion dollars out of which $1.4 billion will be paid in cash and $1.7 billion will be in the form of a convertible note.

Neither Careem nor Uber has made any official announcements yet and also haven’t responded to any media requests to comment on the matter. According to the term sheet privately leaked to Bloomberg, the notes will be convertible into Uber shares at a price equal to $55 per share,

Back in 2016, Careem crossed its 1 billion dollar valuation and the speculations regarding its acquisition by Uber has made rounds several times in 2018.

Uber, the ride-sharing platform, is going for an IPO later this year which is expected to be the New York Stock Exchange’s biggest listing ever. Careem, on the other hand, has fared well in the MENAPAK region with over 1 million drivers in 90 cities of 15 countries. Careem is also working on additional services; a payment service CareemPay to help reduce payment friction, delivery services and other hyperlocal programs to keep its users engaged.

 

[Zulfiqar]

I hope they don't merge the app in Pakistan (which they will most probably do ) as I think careem offers a better service than uber and have better drivers.

 

[Imran Khan]

big companies eat small companies as always

 

[valkyr_96]

big companies eat small companies as always

but big companies were small once? how were they not eaten?

 

[Imran Khan]

but big companies were small once? how were they not eaten?

simple that was start of industry sir
in starting no one know whats coming . in early day thee was so many IT companies then google MS start getting bigger and bigger . today they are eating anything come forward .same these car booking companies were new and fair now they got money they want to remove competitors

 

[AMG_12]

Grab did that to Uber in South East Asia and it monopolised the whole ride hailing service. And ever since, Grab has increased their prices. It'll not go well for Pakistan.

 

[Jf Thunder]

No please dont
Careem was far far better than Uber sh*t
the only thing Uber is famous for is rudeness and harassment

 

[Death Professor]

i don't like monopoly, which removes the competition which in turn ruins the quality of service/product.

 

[S.Y.A]

No please dont
Careem was far far better than Uber sh*t
the only thing Uber is famous for is rudeness and harassment

uber is cheaper than careem

No please dont
Careem was far far better than Uber sh*t
the only thing Uber is famous for is rudeness and harassment

but no wallet system, so overall a drain on the user. koi Rs500 meray uber walay kha gye hian sirf careem type wallet system naah honay ki wajah say.

 

[valkyr_96]

simple that was start of industry sir
in starting no one know whats coming . in early day thee was so many IT companies then google MS start getting bigger and bigger . today they are eating anything come forward .same these car booking companies were new and fair now they got money they want to remove competitors

Bohat bholay mian hain aap…. Caarem chose an easy exit. It is true they were not innovators but they had a superior product. Most startups especially those replicating models churn out subscriber numbers to sell their bloated companies. These people are not entrepreneurial but bankers, hence their goal is selling. Same case was with daraz

 

[Jf Thunder]

uber is cheaper than careem

Careem drivers were well behaved
I dont care about costs

 

[Dubious]

uber is cheaper than careem

Uber drivers are horrible and even the app is ...

 

[S.Y.A]

Uber drivers are horrible and even the app is ...

idk, the promos i get make up for their rudeness. but their wallet system is crap, 5,5 rs kar k 500 rs uber kha chuka hai meray.