Although these negotiations are only exploratory in nature, according to sources, they are a pointer to Uber’s intention of expanding its market to the Middle-East.
As per a Bloomberg report which cites 3 sources familiar with the matter at hand, Uber Technologies is in preliminary talks with its Middle Eastern ride-hailing services rival, Careem to joint hands and combine their services.
As per the report, the companies have worked several potential deal structures. One such collaboration sees Careem’s current leadership managing the new combined business while retaining one or both of the companies’ local brands; another scenario sees Uber acquiring the Careem for an undisclosed sum.
In the event of a joint venture, Uber will want to purchase more than 50% of the combined company; the U.S. ride services company is also open to a outright purchase of Careem.
Neither Uber nor Careem did not immediately respond to requests for comment.