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UAE Green-Lights Uber’s Acquisition of Careem

UAE Green-Lights Uber’s Acquisition of Careem

Tuesday, 11 June, 2019 - 13:00
Dubai- Asharq Al-Awsat
Uber announced UAE’s Minister of Economy Sultan al-Mansouri approved and cleared the first regulatory hurdle of its acquisition of Careem, making it the first country involved to grant its approval.

Uber and Careem continue to work with authorities against monopoly related to obtaining the remaining approvals throughout the Middle East, North Africa, and Pakistan.

Commenting on the occasion, an Uber spokesperson said: “We welcome the decision by HE Sultan al-Mansouri, Minister of Economy of the UAE, to unconditionally approve Uber’s pending acquisition of Careem. Uber and Careem joining forces will deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”

Earlier in April, Uber announced it reached an acquisition deal of $3.1 billion with Careem that’s the largest of its kind in MENA consists of $1.7 billion in convertible notes and $1.4 billion in cash. The deal is expected to be completed during the first quarter of 2020.

According to previous information, the deal will provide an opportunity to combine the two companies' expertise and operational capabilities in a wide range of areas, including networking, mapping, payment systems, and new products. The deal will also contribute to diversifying services for passengers and enhancing their confidence.

For example, combining the mapping technologies of the two companies will help to determine the pick-up and drop off locations of the passengers more accurately and efficiently, a feature of particular importance for UberBus services.

The deal will increase the number of rides, improve services, and provide better job opportunities, as well as increase profits and enhance predictability through less waiting times and greater utilization of drivers' time on the road.

It is believed that the countries in which the two companies operate will enjoy economic and social benefits to embrace transportation technologies at a rapid pace.

Uber and Careem will be able to contribute to economic growth and productivity by increasing the efficiency of the public transport network and better linking labor force to employment opportunities.

Uber and Careem confirm that the deal will allow them to offer greater value to both the passengers and drivers in a highly competitive market.

The local transport market is very lively and competitive, with many viable alternative modes of transportation, including car-pooling, taxis, personal cars, minibusses and public transport where consumers can choose what suits them best.

Looking ahead, it seems the competition will grow even more as there are no major difficulties in entering the market and expanding business through strong and innovative competitors.

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