Car- hailing app, Careem with headquarters in Dubai, but operations across Middle East and North Africa has finally agreed to a $3.1 billion take over by global leading car-hailing tech firm, Uber.

This follows series of negotiations which involved different jusrisdictions especially Egypt where the regulators insisted on some stringent measures aimed at protecting other smaller operators in the market.

With this development, Careem Networks has now become a wholly-owned subsidiary of Uber, while it still preserves its  brand, according to its CEO and co-founder Mudassir Sheikha who will continue to lead the Careem business under Uber ownership.

Sheikha will report to a board made up of three representatives from Uber and two representatives from Careem, sources say.

It added that both Careem and Uber will operate their respective regional services and independent brands.

With the closing of this deal, Uber said it has acquired Careem’s mobility, delivery, and payments businesses across the Middle East region, with major markets including Egypt, Jordan, Saudi Arabia, and the UAE.

The regulatory approval process in Pakistan, Qatar and Morocco is ongoing and the transaction will not close in these territories until all approvals from the legal authorities responsible are obtained.

Read also : Egypt ’s Competition Authority Finally Approves Uber ’s Acquisition of Careem, Although With Conditions

According to Uber CEO Dara Khosrowshahi , “I forward to seeing even more innovation from Careem, as they continue to operate independently under their current leadership. Working in parallel, both platforms will be able to build upon the unique strengths of each, to the benefit of drivers, riders, and the cities we serve across the greater Middle East.”

Sheikha added: “Today marks the beginning of a new chapter for Careem. The journey which we started almost a decade ago to simplify the lives of people the greater Middle East is far from over yet. Careem Joining forces with Uber accelerates that journey as we become the region’s everyday super app.

“We are excited to take Careem to new heights alongside Uber, who appreciates the significant regional opportunity, is supportive of our values and culture, and believes in the purpose that drives us.”

Both Uber and Careem said they believe this completed acquisition will provide an opportunity to expand the variety and reliability of services offered through their applications.

It was also added that for drivers and captains, the companies believe an increase in trip growth and improved services could provide better economic opportunities as well as more predictable earnings through greater ese of drivers’ time on the road.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry