Technology, Transport & Logistics, UAE

Careem acquires UAE-based bikeshare service

Magnus Olsson, Careem, Cyacle
Magnus Olsson, Careem

Careem has entered the micro-mobility space with the acquisition of Cyacle, a UAE-based bikeshare service.

Launched in December 2014, Cyacle it’s a fully-automated docked bikeshare service currently operating in Abu Dhabi. Stations run 24-hours a day via an app, a touch screen kiosk and docking system that releases bikes using a ride code or a member key.

Careem will be launching a new standalone app for iOS and Android to enable users to access the service. Users can access the bikes via app or physically at one of the smart docking stations with credit and debit cards, and the service will offer bikes through a range of daily to yearly memberships.

Magnus Olsson, CXO and co-founder, Careem, said, “This deal means Careem will be able to improve micro-mobility in the region and simplify one of the most important mobility issues – the first and last mile problem. Many journeys are relatively short in distance, including those to and from transportation hubs such as metro and bus stations, so increasing bicycle availability and expanding routes will transform how people commute, as well as offering micro-mobility solutions for short-distance trips.”

Hani Akasha, the Emirati founder of Cyacle added, “The startup scene in the UAE is now such a fast-moving tech environment, and this just proves what we can do in this country.”

Sami Amin, CEO of Cyacle said, “It’s exciting to be taking micro-mobility to the next level becoming an integral part of life in the capital, and with Careem now involved it will accelerate the service and improve the lives of so many more people in the region.”

This acquisition is part of Careem’s overall platform strategy to offer complete mobility solutions, affordable transportation and first- and last-mile mobility. The ride-sharing firm plans to bring micro-mobility to more cities throughout the region over the next 12 months.

In March, Uber and Careem have reached an agreement for Uber to acquire Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash. The acquisition of Careem is subject to applicable regulatory approvals. The transaction is expected to close in Q1 2020.

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