Uber acquires competitor in Middle East for 2.7 billion euros

Uber has paid 2.7 billion euros for the acquisition of Careem, a competing start-up in the Middle East. That company offers its services in Egypt, Jordan, Pakistan, Saudi Arabia and the United Arab Emirates, among others.

The acquisition must first be approved by competition authorities, which Uber expects to close in the first quarter of 2020. Careem will keep its own name and logo and will therefore become a subsidiary of Uber.

Careem is active in 120 cities spread over 15 countries. Just like Uber, it is a ride hailing service, a taxi service that works with an app, various payment methods and a feedback system. In addition, Careem also offers food and parcel delivery services, transport buses and financial services.

It is striking, according to TechCrunch, that Careem received a valuation of 1.8 billion euros last fall. That would indicate that Uber is aggressive in the Middle East market. That contrasts with how it has behaved in the Southeast Asian market, from which it has completely withdrawn.