Uber announced its acquisition of cream from Morocco to Pakistan, while as yet giving the last a chance to work as a free brand under its management.
According to the press from Uber CEO Dara Khosrowshahi, the organization “means to work Careem independently, under the co-founder and current CEO Mudassir Sheikha.”
Khosrowshahi stated while talking about the choice to let Careem work as an independent brand and operate separately, he said “After careful deliberation, we decided that this system has the benefit of giving us a chance to build new product and try new ideas across not one, but two, strong brands, with strong operate inside each.
He included: “Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.”
The press release further reported that the acquisition is subject to regularity endorsement in different countries, which isn’t required to be acquired until 2020.
It further clarified that since the two companies will keep on to a great extent work independently after the acquisition, “very little will change in either teams’ day-to-day operations post-close.”
The arrangement will see Uber pay $1.4 billion in real money and the rest in notes convertible to Uber shares.
Dubai-based Careem flaunts more than a million drivers and 30 million users across 90 cities.
Uber Technologies Inc, a US-based global logistics and transportation company, has been looking for new roads of growth even as it faces an extreme challenge in its core business of ride-hailing from rivals like Lyft Inc.
The IPOs of Lyft and Uber represent a watershed for Silicon Valley’s technology unicorns, which for years have snubbed the stock market in favor of raising capital privately, with investors happy to back their frothy valuations.