Tuesday, 25 Jun 2019

Uber successfully acquires its biggest competitor in Middle East


IllustrationIllustration - Dara Khosrowshahi, CEO of Uber, announced that it is acquiring fellow online ride service provider, Careem, with a value of USD 3.1 billion. This is a deal with the greatest value throughout Dara's leadership in Uber.

Although it will be wholly owned by Uber, Careem brand will remain independent and operate separately. The application will also be maintained. Furthermore, Mudassir Sheikha was also retained as CEO of Careem, as quoted by Bloomberg, on Wednesday, March 27th 2019.

Now, Uber is taking care of government approval from 15 countries where Careem operates. The acquisition activity itself is part of Uber's preparation to take the floor at the stock market in April, following in the footsteps of its rival, Lyft, who had already registered for an IPO.

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Furthermore, this is the first moment for a company based in San Francisco, California, United States, to succeed in annexing its competitors in different regions. Previously, they had experienced a series of defeats in a number of areas where they had previously operated.

In Southeast Asia, the Uber business unit has been purchased by Grab. The same thing happened in China and Russia. In sequence, the company founded by Travis Kalanick was acquired by Didi Chuxing and Yandex.


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