Uber to buy Mideast rival Careem for $3.1bn: Report

Uber plans to buy its Middle Eastern rival Careem for $3.1bn, financial news agency Bloomberg reported on Sunday.

The deal, expected to be announced on Tuesday, will see Uber pay $1.4bn in cash and the rest in notes convertible to Uber shares, Bloomberg reported, citing people with knowledge of the matter.

It comes as Uber prepares for its initial public offering - expected next month - which may, according to some estimates, see the rideshare giant's value increase to $120bn.

Careem declined to comment while Uber did not immediately respond to a request from Reuters to comment.

Dubai-based Careem boasts more than a million drivers and 30 million users across 90 cities, AFP said.

US-based global logistics and transportation company Uber has been seeking new avenues of growth even as it faces severe competition in its core business of ride-hailing from rivals including Lyft.

The IPOs of Lyft and Uber represent a watershed for Silicon Valley's technology unicorns, which for years have snubbed the stock market in favour of raising capital privately, with investors happy to back their frothy valuations.

Uber has been controversial for disrupting the taxi industry in more than 60 countries, GoCurrent said on its website.

It continues to face opposition from both private hire drivers and regulators in several jurisdictions.