The latter will keep operating as a separate brand under Uber’s ownership
As a surprise for many, Uber announced on last Tuesday regarding its aquisition of Careem’s business from Morocco to Pakistan. The company plans on letting the latter operate as an independent brand managed by its local team and management like before.
Rumours turned to reality
The rumours had been in the air from months and the users had been waiting to hear if Careem will take the lead of aquiring Uber or vice versa. Seems like Uber stole the show. According to a press release from Uber CEO Dara Khosrowshahi, they aquired Careem because “Uber intends to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha.”
As per the press release, the acquisition is subject to regulatory approval in many countries and they do not expect to have a 100% aquisition till 2020. It may not impact the users because the two companies plan on operating as separate entities any way. As the press release mentioned, “very little will change in either teams’ day-to-day operations post-close.”
Speaking further about the decision to let Careem operate as a separate entity, Khosrowshahi mentioned: “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.”
The deal closes with the contract thag Uber pay $1.4 billion in cash and the rest as notes that are convertible to Uber shares. Dubai-based company Careem is entering a whole new era of excitement with this intervention!