Uber said to be in talks to buy Dubai’s Careem

Ride-hailing company Uber is in talks to buy Dubai-based rival Careem for $2 billion to $2.5 billion, Bloomberg reported on Monday, citing people familiar with the matter. 

“Careem’s management is working to convince the firm’s shareholders of the merits of a deal,” the report said, adding no final decisions have been made, and the companies may decide against the transaction.

In July, Bloomberg reported that Uber and Careem had held preliminary talks to combine their Middle Eastern ride-hailing services.

Careem had held talks with investors earlier this year to raise $500 million, potentially valuing the firm at about $1.5 billion ahead of a possible listing.

Founded in 2012, Careem’s investors include Saudi Arabia-based STC Ventures, Al Tayyar Travel Group and Kingdom Holding.

In 2016, Saudi Arabia’s Public Investment Fund purchased 5 percent stake in Uber for $3.5 billion.