Uber continues global expansion by snapping up Middle Eastern rival
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Uber continues global expansion by snapping up Middle Eastern rival
Egypt officials have approved the deal, but with some caveats
In brief: Uber's ambitious plans for its international expansion have suffered a few setbacks in places like Russia and China, but the company scored a new deal in the Middle East. The ridesharing giant will take over rival Careem in the region, but will have to abide by a set of conditions so the market remains a level playing field.
Uber may have lost its license to operate in London due to safety concerns, but the company is still quickly expanding in other regions like the Middle East, as it hopes to become profitable by 2021.
Back in March, the ridesharing giant announced plans to acquire Dubai-based rival Careem after nine months of negotiations between the two companies. Now, Egyptian regulators have greenlighted the deal, which is estimated at $3.1 billion and is expected to close in January.
Careem serves the greater Middle East region, with major markets including Morocco, Egypt, Jordan, Pakistan, Saudi Arabia, Turkey, and the United Arab Emirates. Of that group, Egypt was one of the most significant for the deal because of its big population and also where the deal was facing some hurdles.
The regulatory approval has come with a few caveats, such as the fact that Careem will operate as a wholly-owned subsidiary of Uber under an independent brand and management team.
Careem co-founders Mudassir Sheikha, Magnus Olsson, and Abdulla Elyas
Furthermore, Uber had to make a few commitments to appease the Egypt Competition Authority, who analyzed over 270 million trips on the local and international ridesharing markets. For example, Uber won't be able to increase Ube