Uber buys a competitor for $ 3.1 billion

Uber buys a competitor for $ 3.1 billion

March 26, 2019 0 By autotimesnews

American Uber Technologies Inc., a provider of tax and delivery services, has agreed to purchase a $ 3.3 billion Careh Networks Middle East competitor.

Of this amount, $ 1.4 billion will be paid out by funds, another $ 1.7 billion convertible notes.

To complete the deal, the regulatory authorities of the 15 countries in which Careem will operate is required. In particular, it is Egypt, Jordan, Pakistan, Saudi Arabia, the OAU and Morocco.

The completion of the operation is planned in the first quarter of 2020. After that, Careem will become the 100% division of Uber, while retaining its brand.

One of the founders and CEO of Careem Mudasser Sheikh will continue to lead the business. The unit will have its own board of directors, consisting of three representatives of Uber and two representatives of Careem.

The deal will be the largest in the Middle East for the technology industry, the report said.

Earlier it became known that the competitor could appear in Uber itself.

In particular, it was about the delivery service UberEats, whose rival could be the leading European transport platform Bolt, which plans to launch a food delivery service on all key markets in Europe and Africa.