Uber's Takeover of Careem Could Unlock More Ride Options for Travelers
One of the world's largest ride-hailing companies, Uber, is set to prepare an IPO sometime in the next few months, but before it does that, Bloomberg reports that Uber will purchase Careem, a ride-hailing service primarily used in Middle Eastern and African countries.
Uber will acquire Careem in a $3.1 billion cash-and-share deal that is expected to be announced as early as this week. The deal includes $1.4 billion in cash and $1.7 billion in convertible notes, with those notes being converted to Uber shares worth $55 each.
Careem is headquartered in Dubai and operates rides in the United Arab Emirates, Qatar, Saudi Arabia, Bahrain, Lebanon, Pakistan, Kuwait, Egypt, Morocco, Jordan, Turkey, Palestine, Iraq and Sudan. Careem has more than a million drivers on its platform and is in more than 90 cities spread across the world.
The purchase of Careem would complement and somewhat overlap with Uber's footprint — the San Francisco-based ride-hailing giant currently operates in 65 countries and 10 of the countries Careem is already in. Uber doesn't have drivers in Kuwait, Palestine, Iraq and Sudan. Careem also has purchased companies that operate food delivery services similar to Uber Eats and is working on its own food delivery business.
It's unclear if Careem drivers will be ported over to the Uber platform once the deal is completed, but if that is the case, it could open up many more drivers, cities and countries for riders who prefer using the Uber app. Part of Uber's appeal to travelers is that you can open up the app in any city Uber's available in and order a ride without having to download and learn a new app.
Uber has struggled to compete in some overseas markets, instead selling off its operations for stakes in competitors, as was the case with Grab in Southeast Asia and Didi Chuxing in China.
We reached out to Careem but have not received response from the company. An Uber spokesperson declined to comment on the news.
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| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
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Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
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Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month