Ride-hailing service Uber announced on Tuesday it has acquired Mideast competitor Careem for $3.1 billion, giving the San Francisco-based firm the commanding edge in a region with a large, young, tech-savvy population.
Uber said the purchase consists of $1.7 billion in convertible notes and $1.4 billion in cash. It marks the largest technology transaction in the Middle East -- outside of Israel -- and propels the Dubai-based firm to legendary status among the region's budding tech startup scene.
Uber CEO Dara Khosrowshahi said the acquisition of Careem marks "an important moment for Uber as we continue to expand the strength of our platform around the world." Careem, founded by two former management consultants at McKinsey & Co., is popular in countries like Egypt and Pakistan where people overwhelmingly use cash over credit cards.
Dubai now has three of the region's most high-profile start-up success stories. In 2017, Amazon purchased Mideast online retailer Souq.com for reportedly close to $700 million. A decade ago, Yahoo acquired Dubai-based Arab-language internet site Maktoob.
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