According to the recent Bloomberg report released on Monday regarding world famous online Taxi service Uber is in talks to buy Dubai-based rival Careem Networks FZ for almost $2 billion to $2.5 billion, citied the people asking not to be known because the talks are private. No final decisions have been made, and the online taxi service companies may decide against the transaction, according to Bloomberg report.
Discussions are ongoing and Careem’s management is working to satisfy the firm’s merits of the deal. Online taxi service Uber and Careem held first talks in July to combine their Middle Eastern ride-hailing services, hoping to resolve a costly challenge in the region, Bloomberg had previously reported.
We have faith in the customer internet opportunity in the region is huge and untapped, Careem said in an emailed statement. In the last couple of years, the rest of the world has begun to hold this opportunity and we have been move toward by multiple strategic and financial stakeholders. Our determination remains to build a lasting tech institution from the region.
Online taxi service Uber did not instantly respond to an invitation for comment. Uber, which is on track to go public next year, has been seeking new paths of growth even as it battles powerful struggle in its core business of riding hailing.
The company has been building services such as food delivery and freight hauling, and, in April, acquired electric bike service JUMP Bikes to offer U.S. passengers an alternative to cars.
SoftBank, which is the common stakeholder in Uber, has opened up the opportunity of merging Uber with other ride-hailing assets the Japanese group owns across Asia. SoftBank has stakes in Singapore-based Grab and India’s Ola.
At the time of the investment, SoftBank said it wants Uber to focus on rising in the United States, Europe, Latin America and Australia – not Asia, which has been among the most expensive and modest regions for the ride-hailing company, according to Reuters.
Online taxi service Careem has more than a million drivers and operates in more than 100 cities in the United Arab Emirates, Qatar, Saudi Arabia, Bahrain, Lebanon, Pakistan, Kuwait, Egypt, Morocco, Jordan, Turkey, Palestine, Iraq and Sudan.