image credit : Careem

Major ride-hailing behemoth Uber has now been reported to be in talks to merge its operations in the Middle East with Dubai based ride-hailing company Careem in preparations to solve a major competition as the company prepares to go public next year according to a recent report from major news source Bloomberg.

Both companies which are notable for being major players in the ride-hailing space are now said to be holding talks concerning several deal structures which may see Uber merge with Careem Networks which was valued at $1.2 Billion in its most recent round of funding and is said to be in talks with several investors as the company aims to raise $500 million in new funding at a $1.5 Billion valuation to expand its operations.

Uber is also reported to be discussing an outright acquisition deal with Careem although it’s not clear if these deals will be finalized as both companies have several in-depth options to consider concerning the deal.

Careem was also notably known to be seeking an IPO earlier this year although this deal hasn’t played out yet for the company.

With Uber gearing to expand its services in major foreign markets consisting of Africa, The Middle East and several Asian regions, It makes sense that Uber which has notably merged its business in the regions of Russia and South East Asia with Yandex NV and $10 Billion ride hailing Grab respectively wants to do the same in a bid to get a huge stake in the ride-hailing market of the Middle East region.

Careem currently counts a presence in 14 countries and over 100 cities with its major market being Saudi Arabia which makes up a huge part of Careem’s user base.

With the terms surrounding this deal not being made precise yet, We would now watch and see if a merger or acquisition will be held as both companies make moves to expand their various and widely used on-demand transportation services. 

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