Uber to Acquire Careem to Expand the Greater Middle East Regional Opportunity Together

Uber and Careem have reached an agreement for Uber to acquire Careem for
$3.1 billion, consisting of $1.7 billion in convertible notes and $1.4
billion in cash. The acquisition of Careem is subject to applicable
regulatory approvals. The transaction is expected to close in Q1 2020.

Uber will acquire all of Careem’s mobility, delivery, and payments
businesses across the greater Middle East region, ranging from Morocco
to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi
Arabia, and the United Arab Emirates.

Upon closing, Careem will become a wholly-owned subsidiary of Uber,
preserving its brand. Careem co-founder and CEO Mudassir Sheikha will
lead the Careem business, which will report to its own board made up of
three representatives from Uber and two representatives from Careem.
Careem and Uber will operate their respective regional services and
independent brands.

“This is an important moment for Uber as we continue to expand the
strength of our platform around the world. With a proven ability to
develop innovative local solutions, Careem has played a key role in
shaping the future of urban mobility across the Middle East, becoming
one of the most successful startups in the region. Working closely with
Careem’s founders, I’m confident we will deliver exceptional outcomes
for riders, drivers, and cities, in this fast-moving part of the world,”
said Uber CEO, Dara Khosrowshahi.

“Joining forces with Uber will help us accelerate Careem's purpose of
simplifying and improving the lives of people, and building an awesome
organisation that inspires. The mobility and broader internet
opportunity in the region is massive and untapped, and has the potential
to leapfrog our region into the digital future. We could not have found
a better partner than Uber under Dara's leadership to realise this
opportunity. This is a milestone moment for us and the region, and will
serve as a catalyst for the region’s technology ecosystem by increasing
the availability of resources for budding entrepreneurs from local and
global investors,” said Careem CEO and co-founder, Mudassir Sheikha.

The greater Middle East region is already seeing the economic and social
benefits of rapid technology adoption and improved access to
transportation. This transaction supports the collective ability of
Careem and Uber to improve the region’s transportation infrastructure at
scale and offer diverse mobility, delivery and payment options. It will
speed up the delivery of digital services to people in the region
through the development of a consumer-facing super-app that offers
services such as Careem’s digital payment platform (Careem Pay) and
last-mile delivery (Careem NOW).

This transaction brings together Uber’s global leadership and technical
expertise with Careem’s regional technology infrastructure and proven
ability to develop innovative local solutions. Both companies believe it
will provide an opportunity to expand the variety and reliability of
services offered, at a broader range of price points to serve more
consumers. Similarly, for drivers and captains, the companies believe an
increase in trip growth and improved services could provide better
work opportunities as well as higher and more predictable earnings
through greater utilisation of drivers’ time on the road.

Jefferies LLC acted as exclusive financial advisor to Careem on the
transaction.

About Uber

Uber’s mission is to create opportunity through movement. We started in
2010 to solve a simple problem: how do you get access to a ride at the
touch of a button? More than 10 billion trips later, we're building
products to get people closer to where they want to be. By changing how
people, food, and things move through cities, Uber is a platform that
opens up the world to new possibilities.

About Careem

Careem is the internet platform for the greater Middle East region. A
pioneer of the region’s ride-hailing economy, Careem is expanding
services across its platform to include mass transportation, delivery
and payments. Careem’s mission is to simplify and improve the lives of
people and build a lasting organisation that inspires. Established in
July 2012, Careem operates in 120 cities across 15 countries and has
created more than one million economic opportunities in the region.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190325005816/en/