The big kahunas of ride-sharing in the Middle East, Uber and Careem, are in preliminary talks to join forces or merge. According to a report on Bloomberg, the companies have discussed a number of feasible options and deal structures. As of now, the talks are still of a private nature, but more will be released to the public if it becomes official.
What are the terms of the Careem-Uber merger?
Since the talks are still private, we don’t know too much yet. Initial discussions stated that Uber would like to own more than half of Careem, if not buy it outright.
Under one of these proposals, Careem would manage the day-to-day business while retaining both or only one of the brands locally.
What are Careem and Uber up to?
Careem is currently meeting with investors to raise $500 million (Dh1.8 billion), potentially valuing the company at $1.5 billion. The ride-sharing company has even talked to banks about a potential IPO in January 2019.
Uber, on the other hand, has been trimming its businesses outside its main hubs in preparation for an IPO in 2019 as well.
It will be exciting to see what this merger brings us. Hopefully cheaper fares are around the corner. Maybe we’ll get to see a variation of UberPool as well.