Dubai's ride-hailing app Careem Monday said it has acquired Hyderabad-based bus-shuttle service app Commut for an undisclosed amount.
Commut was set up in 2015 by six IIIT-Hyderabad graduates and is operational in the city. Backed by Shell-Foundation and 50K Ventures, Commut has served over 70,000 customers and onboarded 400 driver-partners. It has made over 7.5 lakh trips in over 100 existing routes.
"...we are always looking to invest in new technologies and high-calibre people to help solve complex local problems. And mass transportation is one of the biggest issues facing cities in the Greater Middle East," Careem said in a blogpost.
It added that improving the quality and availability of mass transportation will help to create affordable transport options.
While Careem is taking over Commut's talent and technology, the latter's customers and drivers will become part of another shuttle service provider, Shuttl, the statement said.
Careem, which operates in 14 countries, including Turkey and Pakistan, said it will continue to acquire and invest in "high impact, relevant and values driven technology businesses and start-ups that can accelerate growth".
"Our mission is in line with Careem's of providing users with a safe, reliable, affordable and convenient means of transportation for people. Joining Careem and building the mass transportation vertical will help us in fulfilling our mission at a much larger scale," Commut CEO Prasanth Garapati said.