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Uber and Careem Networks Hold Talks to End Costly Rivalry

Uber and Careem talks

Reports are there that Uber Technologies is in early-stage discussions with Careem Networks for either Uber the company’s outright or they combine the operations. The two are ride-hailing companies, but the latter has its services only in the Middle East. According to Bloomberg, three individuals who are well vast with the issue reported that the move to bring to an end the rivalry between the two companies that have been there in the Middle East. The rivalry has seen both companies run at a loss in the region.

Bloomberg reported that several talks about different deals had been held up between the two companies, but they are yet to reach to an agreement. The move will not be surprising for Uber since it has already stopped operations in China, Russia, and Asia. Uber reported that it was hard for it to sell its global businesses units separately. Any deal between the two will ensure that Uber owns over a half of the company if it is not buying the outright of Careem. According to reports from Bloomberg, under one discussed deals stated that executives of Careem would operate the merged business. It also stated that one or both the local brands would go on with operations. Another discussion stated that Uber would purchase Careem, but a deal is yet to be reached according to Bloomberg.

Talks are also there between the two that will see Careem raising $500 million from investors. The deal could give Careem a valuation of almost $1.5 billion. Furthermore, Careem reached out to investment banks in January 2018 about an initial public offering. The company currently has its operations in 70 cities across ten countries that include Pakistan and North Africa. It has always leads in its areas of operation. Saudi Arabia remains Careem’s largest market. Uber is looking forward to signing up women drivers in Saudi Arabia to maximize on the decision that did away with the ban on female drivers.

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Written by Denis Opudo

Am an engineer who's a tech blogger, hit me up on dennis@techinafrica.com and we base our discussion on technology in Africa and the rest of the world.
Denis the Tech guru

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