Didi Chuxing invests into Careem to gain Middle East

Didi Chuxing invests in Careem to expand its global coverage to the Middle East. Beijing-based ride-sharing giant expanded once again in a financing deal for Careem as Uber's strongest competitor in the Middle East with valuations in excess of US$1billion. A week ago Didi has taken the same strategic step with Taxify to reach the European and African markets.

Tinuku Didi Chuxing invests into Careem to gain Middle East

Both did not disclose the amount of the investment. Didi was founded by Cheng Wei, Zhang Bo and Wu Rui in 2012 also have shares in Lyft in the United States, Ola in India, 99 in Latin America and Grab in Southeast Asia. The company has also acquired Uber China in 2016.

This technology company has a market share just behind Uber and has moved in head to head competition. Didi made a massive expansion into the global money market, expertise and technological capabilities that have been developed to serve 400 million users in China.

"Didi Chuxing brings AI's advanced skills, insights and expertise to our organization as it into the next stage of growth," Careem CEO Mudassir Sheikha said in a statement.

Careem was founded by Sheikha, Magnus Olsson and Abdulla Elyas in 2012 in Dubai and has since become a great competitor of Uber in the Middle East. In June they raised US$500 million of funding by investors including Daimler, Rakuten and Saudi Telecom Company (STC).

The Startup has a valuation of US$1.2 billion and operates in 80 cities across 13 countries in the Middle East and North Africa. The company claims to have more than 12 million registered subscribers and more than 250,000 drivers. In July, Careem invested money into Swvl headquartered in Egypt.

"The evolution in our long relationship will enable Careem to be more successful in pursuing growth opportunities through continuous innovation and sustainability," Sheikha said.

Didi says the global collaboration framework covers more than 60 percent of the world's population in 1,000 cities. Strategic measures have placed Didi's position clearly about his next business ambition.