Uber climbs 6% on report of investment talks with its Mideast business
Dec. 06, 2021 12:29 PM ETUber Technologies, Inc. (UBER)By: SA News Team4 Comments
- Uber (NYSE:UBER) started the week on a strong note, Monday, as its shares rose more than 6% following a report regarding Careem, its ride-sharing business in the Middle East.
- According to a report from Reuters, Uber (UBER) has held talks with Careem's management about bringing outside investors into the business. No financial terms were reported, but Uber (UBER) is expected to retain a stake in Careem, while the Dubai-based company's management would have more of a role in the ride-sharer's business strategy.
- The outside investments would reportedly be used to finance what has been called Careem's Super App, which lets consumers order food deliveries, make digital payments and pay for courier deliveries in addition to making ride reservations.
- Uber (UBER) acquired Careem in 2019 for approximately $3.1 billion.
- Last week, Uber (UBER) shares rose after UBS analyst Lloyd Walmsley said in a research note that the company's stock price could double due to gains in its mobility and delivery businesses.