They Put $100,000 Into Careem. Uber Bought It For $3.1 Billion

When Mudassir Sheikha and Magnus Olsson launched Careem in Dubai in 2012, it was a basic booking website. The founders manually called drivers — known at Careem as Captains — to arrange trips.

They had each invested $50,000 of their own money. As Careem expanded across the Middle East, Sheikha says the company repeatedly came close to running out of cash.

Seven years after launch, Uber agreed to acquire Careem in a deal valued at $3.1 billion. The acquisition closed in 2020, shortly before the Covid pandemic sent Careem’s business down 90%, according to Sheikha.

Today, Careem spans ride-hailing, food and grocery delivery, payments and other everyday services. Uber owns Careem’s ride-hailing business, while Careem Technologies — backed by Uber, Abu Dhabi-based e& and Careem’s founders — houses the rest of the app.

Watch the video above to learn how Sheikha built Careem, why the company sold to Uber and what comes next.

#CNBC #CNBCMakeIt #Entrepreneur #FounderEffect #Careem

-----

Subscribe: @cnbci

CNBC International Live: @cnbcinternationalive

LinkedIn: https://www.linkedin.com/showcase/cnbc/

TikTok: https://www.tiktok.com/@cnbc

Facebook: https://www.facebook.com/cnbc

Instagram: https://www.instagram.com/cnbc

Threads: https://www.threads.net/@cnbc

X: https://twitter.com/CNBC

Telegram: https://t.me/cnbc