Uber acquires Middle East rival Careem for $3.1 billion

Uber has acquired Middle East ride-sharing rival Careem for $3.1 billion, the company announced Tuesday.

According to Uber's announcement, $1.7 billion will be paid in convertible notes and $1.4 billion will be paid in cash.

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Careem will keep its brand and app, and will operate as a wholly owned subsidiary of Uber, according to the company.

Uber CEO Dara Khosrowshahi called the acquisition “an important moment for Uber as we continue to expand the strength of our platform around the world.”

"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,” he said.

Careem CEO and co-founder Mudassir Sheikha said the deal will help "accelerate Careem’s purpose of simplifying and improving the lives of people, and building an awesome organisation that inspire."

"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," he added.

Careem operates across the Middle East, and is established in major markets like Egypt, Jordan, Pakistan, Saudi Arabia and the United Arab Emirates.

The company launched in 2012, three years before Uber started operating in the region.