United Arab Emirates (UAE)-based ride-hailing app Careem has acquired Hyderabad-based mass transportation app Commut for an undisclosed amount. With this acquisition, Careem's marks its entry into India.
Post acquisition, Commut's talent and technology will be taken by Careem. The deal would accelerate Careem's expansion into mass transportation through the addition of bus services across the 100 cities it operates in.
Prasanth Garapati, CEO of Commut, said, "We built Commut with the mission to touch and improve people's lives by offering an economical, comfortable, safe and tech-enabled mass transit solution. 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 was founded by six graduates of Indian Institute of Information Technology (IIT) Hyderabad in 2015. It is backed by UK-Based Shell-Foundation and 50K Ventures.
Magnus Olsson, Co-founder and Chief Experience Officer of Careem, said, "As a leading tech company from the region, we are always looking to invest in new technologies and the right people to help solve complex local problems. Commut has a successful track record in mass transportation, and we are excited to bring their expertise into the Careem family."
Careem was founded five years ago. It claims to have served more than 20 million customers in over 100 cities.