Uber buys Careem for $ 3.1 billion

Image: MOHAMED EL-SHAHED / AFP / Getty Images

Uber spent $ 3.1 billion to dominate competition in the Middle East.

He announced Tuesday that he has reached an agreement on the takeover of Dubai-based Careem, which operates in 15 countries, including Morocco, Pakistan, Egypt, Jordan, Pakistan, Saudi Arabia and the United Arab Emirates.

The agreement is for $ 1.4 billion in cash and $ 1.7 billion in loans. This is the largest technology sector contract in the region outside of Israel, according to the Associated Press.

The company will operate with its two co-founders under Uber as its own brand – for now. On the Careem website, the company wrote: "We are still Careem".

Uber arrived in Careem territory in late 2013, a year after the founding of Careem. Now, the two most popular options are good.

Liad Itzhak, Senior Vice President of Here Mobility, said in an email that the acquisition would remove competition from local transit and turn the region's market into an Uber monopoly. Uber was withdrawn from Southeast Asia last year and sold there its activities to the local Grab platform.

Uber CEO Dara Khosrowshahi wrote in an email to employees on Tuesday that Careem remains an independent brand: "We have decided that this framework has the advantage of allowing us to build new products and try to new ideas through two, with powerful operators within each. "He mentioned" integration "eventually to improve the service and bring the new products offered by Careem.

Uber is expected to go public next month with a potentially record valuation of $ 120 billion. Meanwhile, the Uber's rival, Lyft, has announced plans to announce its IPO on Friday. Lyft focused on the US market, with its only global expansion in Canada.