2019-03-26 05:40:36date was

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  • Are Uber & Careem Going to Join Forces?


    “Which offers a better service?” “Which costs less?” and all these kind of questions will soon be invalid because Bloomberg reported that Uber and Careem are in “preliminary” talks about a merger! There are also talks about Uber acquiring Careem, but so far these discussions are apparently leading nowhere.

    Three anonymous sources told Bloomberg that Uber is still negotiating “potential deal structures,” and hasn’t come to an agreement yet. This comes as part of Uber’s preparations to do a public offering in the future; yes, they are planning on raising capital by offering their stock to the public.

    The two, however, have been at each other’s throats for a while now. Careem operates in 70 cities and is the market leader in almost all of them, Bloomberg reported.

    Regardless, we can only question how this is going to affect our day-to-day expenses. If a merger happens there will be no room for competition, which means that fares could soar. All the aforementioned leaves room for speculation that it is not just a merger, but an indirect way to monopolise the market.

    Also, are the ride-hailing apps going to retain their names, or are names going to change? The upcoming days will tell us more, but a merger/acquisition will affect the businesses and us too!

    By Adel M. Fakhry