Billions buy before IPO: Uber expands in the Middle East

Shortly before the IPO Uber expands its business in the Middle East. Through a billion-dollar purchase, the Mitfahrdienst wants to strengthen its position in the highly competitive region.



The passenger service Uber supports an expensive takeover. For $ 3.1 billion, the rival Careem will be taken, the US company said. The brand Careem should be maintained, it was said.

After a series of sales abroad, Uber strengthens its position in the highly competitive region, where many people do not own their own car and therefore rely on ride-sharing services. The acquisition should also be a signal of strength - just before the planned IPO.

It is expected that Uber will launch its IPO in April with a roadshow. The company's market valuation is estimated to be at least $ 100 billion.

The carpooling service Careem, which is valued at about two billion dollars and active in 98 cities, has so far been joined by Daimler, along with the Chinese carpooling service Didi Chuxing and the Saudi investor Kingdom Holding.

REF: http://www.spiegel.de/wirtschaft/unternehmen/uber-expandiert-in-nahost-milliardenkauf-vor-boersengang-a-1259657.html