Uber acquires Careem

The private transport provider companies had a lot of tension as well as competition going on among them. The words of companies buying each other have been around for almost a year now.

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Uber acquires Careem

By

Sana Hassan

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Uber acquires Careem
Uber acquires Careem

The private transport provider companies had a lot of tension as well as competition going on among them. The words of companies buying each other have been around for almost a year now. Recent rumors indicate that the deal has been signed and the transfer has been decided. There is no official statement as yet. Both the companies have decided to keep it low for now. The rumor originates from a leaked report.

When will the acquisition go official?

The words are the official announcement of the deal is expected to take place by the end of this week.

Deal’s cost price

Back in 2016, Careem crossed the 1 million thresholds as a unicorn. It is now a company worth 3.1 billion. That is exactly the amount of the deal signed. Among the price, 1.4 billion will be paid in cash and 1.7 billion will paid in form of a convertible note. The convertible notes are said to be Uber share at the price of 55 dollars per share.

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About the companies

Both of these companies have competed with each other in providing better transport facilities. There were pros and con on both sides. The time will tell if there will be any change in the quality of the provider.

Will the service be affected?

The question arises with the shift of drivers from careem to Uber. Will the app be completely merged into Uber? Or will it operate under uber with the same name? The questions are yet to be answered. Another query related to this deal is the quality of the rides. Whether or whether not uber will reach the level of Careem in terms of conditions applied to the drivers or not. Will the fares be economical as will they tend to rise? The time will tell.

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