Question: In 2019, Uber announced that it is acquiring Middle Eastern ride-hailing competitor Careem for $3.1 billion ahead of the US company's impending initial public offering.
In 2019, Uber announced that it is acquiring Middle Eastern ride-hailing competitor Careem for $3.1 billion ahead of the US company's impending initial public offering. Careem will become a wholly-owned subsidiary of Uber, which will acquire all of Careem's mobility, delivery, and payments businesses across the greater Middle East region. The deal, which remains subject to regulatory approval in the 15 countries where Careem operates, is expected to close in 2020. Uber offers more than the traditional ride-share service offering. In addition to ride-sharing, Uber has partnered with Healthcare providers to reduce the number of no shows for appointments. The company also delivers food to customers, and they also serve as a contracted delivery arm for several restaurants. Uber also offers a service to match freight truck drivers to freight shipping customers in near real time. Careem is the internet platform for the greater Middle East region. A pioneer of the region's ride-hailing economy, Careem is expanding services across its platform to include mass transportation, delivery and payments to become the region's everyday SuperApp. Careem's mission is to simplify and improve the lives of people and build a lasting organization that inspires. Careem was established in July 2012, and was acquired by Uber in 2020. Careem operates in over 100 cities across 14 countries and has created more than one million employment opportunities in the region. Dr. Shweta Singha, assistant professor at Warwick Business School, said the deal was further evidence of Uber's growing global ambition. "It had already acquired Jump Bikes, now it has acquired its biggest Middle Eastern rival Careem," he said. "It's clear that Uber is moving away from being a 'vanilla' car sharing company to becoming a one-stop shop, which connects end to end transportation.
Given the limited information from the question, address the following : a. Please identify and discuss two reasons why Uber would purchase Careem. Take care to offer two distinctively differently reasons for the acquisition. b. Given your limited understanding of Uber the services it offers, what international corporate level strategy do you recommend? Provide at least two points of support.
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