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Bloomberg
Uber Technologies Inc and Careem Networks FZ are in preliminary talks to combine their Middle Eastern ride-hailing services, hoping to resolve a costly rivalry as Uber prepares for a public offering next year, according to three people familiar with the matter.
The companies have discussed a number of potential deal structures, but they haven’t come to an agreement on the contours, according to the people, who asked not to be identified because the talks are private.
Uber has sold operations in Southeast Asia, Russia and China, and insisted that it was done selling off its global business piecemeal. In its discussions with Careem, Uber has said that it would need to own more than half of the combined company, if not buy Careem outright, according to the people familiar with the talks.
Careem is currently in talks with investors to raise $500 million, potentially valuing the Dubai-based ri-de-hailing company at about $1.5 billion. The company is said to have held early talks with banks about a potential IPO in January.