Uber continues talks to buy Dubai’s Careem – report

Ride hailing firm Uber is continuing talks to buy Dubai-based rival Careem in a deal that could value the firm at $2-2.5bn, according to reports.

Bloomberg cited sources as confirming negotiations had continued after talks were first reported by the news service in July.

Read: Uber in talks with Dubai’s Careem to merge in Middle East – report

Careem’s management is said to be working to convince shareholders of the merits of the deal, although no final decision has been made.

“We believe the consumer internet opportunity in the region is massive and untapped,” Careem was quoted as saying.

“In the last couple of years, the rest of the world has begun to embrace this opportunity and we have been approached by multiple strategic and financial investors. Our ambition remains to build a lasting tech institution from the region.”

Uber declined to comment.

Among the goals of the talks are to resolve a costly rivalry in the Middle East and Africa, which has seen both firms slash fares.

Uber had previously said it wanted to own more than half of any combination with Careem, which was said to be in talks earlier this year to raise more than $500m from a listing.

Read: Dubai’s Careem in early IPO talks

Careem operates across more than 100 cities in the Gulf region, North Africa, Turkey, Palestine, Jordan, Pakistan, Iraq.

The company recently launched services in Sudan.

Read: Uber’s Dubai rival Careem expands services into Sudan