Dubai: Careem announced on Tuesday it has acquired Cyacle, a bike rental service, which will allow the ride-hailing app to grow its presence in the transport sector.
Careem did not disclose the value of the deal, but said the acquisition will allow it to improve mobility in the region.
“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,” said Magnus Olsson, Careem’s chief experience officer and co-founder.
Cyacle operates in Abu Dhabi, where it has docked bicycles for consumers to use. The bicycles are available 24 hours a day via an app, and users can input a ride code to release the bicycles from the docking system.
Gulf News understands that Cyacle is currently only present in Abu Dhabi, but Careem plans to expand its presence in the UAE and then in other countries.
The app will be available for iOS and Android, and will be accessible via the main Careem app. It will allow users to pay for renting the bicycles through their credit and debit cards, and have daily to yearly memberships.
For Careem, the acquisition is part of its strategy to offer what it describes as “complete mobility solutions” and affordable options. The company already offers motorbike transport and bus services in other Middle Eastern markets where it operates, on top of its core offering of car rides.
The announcement also comes just two months after Uber announced it will acquire Careem for $3.1 billion. Under this deal, Careem will operate as an entity under the Uber umbrella, retaining its brand name, logo, and top management.