Uber to buy Middle East ride-sharing rival Careem for $3.1 billion

The Careem Networks FZ ride-hailing app will be displayed on an Apple Inc. iPhone 8 in This specific arranged photograph outside the Mall of the Emirates in Dubai, United Arab Emirates, on Sunday, Oct. 7, 2018. Careem last month acquired Indian bus shuttle service app Commut as the Dubai-based ride-hailing firm expands into mass transport. Photographer: Christopher Pike/Bloomberg via Getty Images

Christopher Pike | Bloomberg | Getty Images

The Careem Networks FZ ride-hailing app will be displayed on an Apple Inc. iPhone 8 in This specific arranged photograph outside the Mall of the Emirates in Dubai, United Arab Emirates, on Sunday, Oct. 7, 2018. Careem last month acquired Indian bus shuttle service app Commut as the Dubai-based ride-hailing firm expands into mass transport. Photographer: Christopher Pike/Bloomberg via Getty Images

The acquisition, which remains subject to regulatory approval, consists of $1.7 billion in convertible notes along with also $1.4 billion in cash. the item will be anticipated to close inside first quarter of 2020, the companies said.

Careem has “played a key role in shaping the future of urban mobility across the Middle East, becoming one of the most successful startups inside region,” Khosrowshahi said in a statement.

He added in which the combined company will “deliver exceptional outcomes for riders, drivers, along with also cities, in This specific fast-moving part of the earth.”

Careem co-founder along with also CEO Mudassir Sheikha will stay on to lead the Careem business, the companies said. Careem along with also Uber will continue to operate as independent brands.