Uber in talks to buy Dubai’s Careem?

DUBAI: Uber Technologies Inc is in discussions to buy its Dubaibased rival Careem Networks FZ as the ride-hailing giant expands in the Middle East, people familiar with the matter said.

A deal could value Careem at US$2 billion to US$2.5 billion (RM8.28 billion to RM10.35 billion), the people said.

Negotiations are ongoing and Careem’s management is working to convince the firm’s shareholders of the merits of a deal, the people said. No final decisions have been made, and the companies may decide against the transaction, they said.

“We believe the consumer Internet opportunity in the region is massive and untapped,” Careem said in an email.

“In the last couple of years, the rest of the world has begun to embrace this opportunity and we have been approached by multiple strategic and financial investors. Our ambition remains to build a lasting tech institution from the region.”

Uber and Careem held preliminary talks in July to combine their Middle Eastern ride-hailing services, hoping to resolve a costly rivalry in the region, people familiar with the matter said at the time.

Uber had said it wanted to own more than half of the combined company and had also discussed buying Careem outright at the time, the people said.

A deal with Uber could head off a potential initial public offering.