Uber‘s acquisition of its Dubai rival, Careem, has marked the largest technology industry transaction in the Middle East. The deal, however, is likely to be viewed as anti-competition in Egypt’s ride-hailing market.
The global ride-hailing giant (Uber) and Careem announced the development on Tuesday through a joint statement.
The deal, which is valued at $3.1 billion, gives Uber access to the Middle Eastern region which includes: Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates, etc.
“Careem and Uber are joining forces. We have reached an agreement in which Uber will acquire Careem for $3.1 billion.”
Anti-competition probe: But the acquisition might have contravened some competition rules, even as the Egyptian Government has disclosed that the country would open an investigation into the deal’s impact on competition in the country.
If the deal scales the anti-competition probe, the acquisition will boost Uber’s global presence ahead of a keenly anticipated stock market debut.
About the $3.1 billion deal
The capital for the deal will be paid in two forms: Uber would pay $1.4 billion in cash and the remaining $1.7 billion in convertible notes.
Careem to retain brand: According to the joint statement released, the acquisition wouldn’t affect the brand of Careem. The company will keep to its name and company App, operating independently from Uber services in the region.
It was also disclosed that the Dubai ride-hailing company is planning to expand its services to include mass transportation, delivery and payments.
“Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region.”
What does Careem offer: Established in 2012, Careem boasts of more than a million drivers and 30 million users across 120 cities in the Middle East and North Africa.
Executives at both ride-hailing companies consider the deal a major boost
Top executives at both ride-hailing companies have described the deal as a much-needed boost to their services and expansion plan. For Uber, the deal comes at a period the US-based company is considering expansion and preparing its listing on the public market.
The initial public offering is expected to take place next month. And according to some estimates, the rideshare giant’s value is expected to increase to $100 billion.
“This is an important moment for Uber as we continue to expand the strength of our platform around the world.
“Working closely with Careem’s founders, I’m confident we will deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”
Meanwhile, the chief executive and co-founder of Careem, Mudassir Sheikha, said the deal will fast-track the objectives of the company, adding that there are enormous opportunities for both companies in the Middle East region.
“Joining forces with Uber will help us accelerate Careem’s purpose of simplifying and improving the lives of people, and building an awesome organisation that inspires.
“The mobility and broader internet opportunity in the region is massive and untapped, and has the potential to leapfrog our region into the digital future.”
The acquisition is expected to close in the first quarter of 2020 if it receives regulatory approvals.
Uber Technologies, Inc. develops, markets, and operates a ridesharing mobile application. The product enables users to arrange transportation services with third party providers. The company offers UberBLACK, which provides premium rides with professional drivers; UberSELECT, an application for low cost ride; and UberSUV, an application for providing customers with sports utility vehicles. In addition, it provides Uber Eats, a food delivery application; Uber Freight, an application for logistics; and Uber Health for health related advices. It serves customers in North, Central, and South Americas, as well as Europe, the Middle East, Africa, and the Asia Pacific.
Careem Networks FZ LLC provides private car booking services. The company enables customers to order a car online; or using its mobile application, allows customers to track their rides in real-time, pay with credit cards, and access receipts online. It serves individuals, businesses, and large corporations in Dubai and Abu Dhabi, United Arab Emirates; Doha, Qatar; Riyadh, Saudi Arabia; Boston, Massachusetts; and San Francisco, California. The company was founded in 2012 and is based in Dubai, United Arab Emirates.
Chad’s President Deby dies of injuries suffered on the frontlines, as son takes over
The President had visited the frontlines to share his election victory with the soldiers before the unfortunate incident.
President Idriss Deby of Chad has died of injuries suffered on the frontlines when some terrorists attacked the army. The President had visited the frontlines to share his election victory with the soldiers before the unfortunate incident.
The departure of the newly re-elected President was disclosed by the AFP News Agency on Tuesday through its Twitter handle.
It tweeted, “#UPDATE Chad’s newly re-elected President Idriss Deby Itno, in power for three decades, died Tuesday of injuries while fighting rebels in the north of the Sahel country, the army says.”
Meanwhile, a four-star general who is a son of Chad’s slain president Idriss Deby Itno will replace him at the head of a military council, the army announced Tuesday.
“A military council has been set up headed by his son, General Mahamat Idriss Deby Itno,” the army’s spokesman, General Azem Bermandoa Agouna, said on state radio, shortly after the announcement that the newly re-elected president had died of wounds while fighting rebels in the north of Chad.
Elon Musk loses an estimated $6bn after a Tesla car accident killed two people
Elon Musk’s net worth dipped by $6 billion following a tragic Tesla car accident that killed two people.
The second richest man in the world, Elon Musk, witnessed his wealth shed an estimated $6bn after a Tesla car was involved in an accident that led to the death of two people.
Tesla stocks dropped by 3.8% after the news of the crash went mainstream. The resultant effect on Elon Musk’s wealth was a $5.71bn loss in a single day.
Two men lost their lives on Saturday night in Houston when their 2019 Tesla model car slammed into a tree. Police authorities on sight claimed the car might have been on autopilot due to the sitting position of the corpses.
They also struggled to put out the fire from the Tesla car and even called Tesla for help. The death of the two men has sparked a heated argument between Tesla and its critics. Autopilot or not?
Although police officers’ assertion that the car may have been on autopilot remains unconfirmed, it has raised serious uncertainty about the safety of Tesla’s autopilot feature and Tesla’s critics are not backing down on this.
Elon Musk reacts
Elon Musk has reacted to the news, insisting that the autopilot feature in the crashed vehicle was not enabled. According to him, the Wall Street Journal’s coverage of the accident was not professional.
What you should know
Elon Musk is now worth $183bn following the recent drop. He closed the gap on Amazon’s Jeff Bezos to $4bn early last week. The gap has widened to $14bn today.
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