Uber’s Takeover of Careem Could Unlock More Ride Options for Travelers

Mar 26, 2019

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

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. 

Featured image by Thomas Trutschel/Photothek via Getty Images.

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
17.24%-26.24% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.