Online Transport Company UBER, an online transport service provider company around the world intends to buy its competitor CAREEM in order to broaden their networks. According to the news agency Bloomberg, UBER is being discussed at a high level in order to expand its network in the Middle East to compete with Dubai-based rival CAREEM networks.
The condition of not being named by these people was told that companies can announce cash and shares transactions in the coming weeks. The CAREEM price will reach $ 3 billion. Talking about this, they said, there was no final agreement yet, while the company representatives avoided disclosing any backend story about purchase.
San Francisco based online transport service provider company UBER, is insisting on its development and is aggressively invested in food delivery, logistics, electric bikes and self-driving vehicles because its aim is to prepare itself for public offering this year.
Those who were aware of this matter said that UBER and CAREEM had initially interacted in July so that they could jointly travel in the Middle East. Careem, whose backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce giant Rakuten Inc., was valued at about $1 billion in a 2016 funding round, making it one of the most valuable technology start-ups in the Middle East.
According to the creams website, the company has over 10 million drivers and it serves over 100 citizens in the Middle East. However, to achieve its competitors, the above-mentioned strategy will be adopted, the company has used these deals in general to overload and reduce their expensive overseas operations.
A deal would signal Uber’s commitment to the Middle East, where one of its biggest investors, a Saudi Arabian sovereign wealth fund overseen by the divisive Crown Prince Mohammed bin Salman, is based.