The deal was finally confirmed on Tuesday after more than nine months of start-and-stop negotiations. Careem will remain an independent brand, Uber said, but investors will be completely bought out through $1.4 billion in cash and $1.7 billion in convertible notes.why it would be very difficult for Uber to reach significant scale in the region. In hindsight, his comments explain why the deal makes perfect sense for Uber.
For example,"It took Uber almost 2 years to realize that very few people in this region have a credit card," he said."That's a very basic thing. It's 101 in this region."The CEO of Careem explains how the company is scaling up to beat Uber in a quickly growing market In an email to Uber employees, CEO Dara Khosrowshahi called Sheikha and his co-founder, Magnus Olsson,"first-class entrepreneurs." Here's his company-wide email, as provided by Uber:Five years ago, Uber launched in Dubai. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that's become so important to Uber.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each.
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