Ride-hailing startups Uber and Careem are in initial talks to merge their ride-hailing services, in the hopes that it would resolve rivalry especially since Uber is preparing for a public offering next year.
According to three people familiar with the case, the two startups have discussed various potential deal structures but still haven’t made any decisions yet. The three people were asked to remain anonymous as the talks are private.
Uber has already sold its operations in Southeast Asia, China, and Russia and has mentioned that it was done selling its global business piecemeal. During its discussions with Careem, Uber stated that it would need to own more than half of the merged company, if not buy Careem.
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.
On the other hand, Careem is already in talks with investors to raise $500 million, which is going to put its value at about $1.5 billion. Additionally, the company is said to have held early talks with banks about a potential IPO back in January.