Uber confirmed yesterday that it has acquired Careem, one of its key Middle East rivals, in a cash and stock deal for $3.1 billion.
Despite the acquisition, however, Uber has clarified that both companies will continue operating their respective services independently. Also, no changes will be made to Careem’s top-leadership and neither will there be any toying around with its name, brand, or identity.
Basically, that means Careem users will feel almost no impact on their relationship with the company.
It released a statement shortly after the news broke saying: “In terms of the service you know and love, nothing will change. With Uber, we have a partner that is well-resourced and aligned with our vision and values. Uber has been very successful in the region and shares our ambition to simplify and improve even more lives.”
In a message to Uber’s employees, the company CEO Dara Khosrowshahi explained the key reason behind keeping Careem as a stand-alone entity with its own brand and identity. He said: “After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each.”
Khosrowshahi added that the two entities will integrate their networks over time to offer improved, more cost-efficient, and higher-quality services to customers.
The CEO of STV, Abdulrahman Tarabzouni, said in a statement, “Careem is a true pioneer in the MENA technology industry and this transaction is testament to its rapid growth and the massive digital demand in this region. From the very start, Careem’s co-founders understood the local needs of this young and dynamic population, tapping into a tech-savvy and early adopter customer base.”
“This deal with Uber, a leading global technology player, will help Careem expand its customer base even further and continue to develop the regional economy. It also sends a strong message that this part of the world can deliver on its digital potential and create significant value,” said Abdulrahman.