Uber clears regulatory hurdle for Careem acquisition: The UAE Minister of Economy grants full approval!

MAGNiTT News 1 year ago - Tue, Jun 11, 2019, 10:59 AM

Uber clears regulatory hurdle for Careem acquisition: The UAE Minister of Economy grants full approval!
Author: MAGNiTT

The UAE Minister of Economy has granted its full approval of Uber’s $3.1 billion acquisition of Careem.

The UAE is the first country where Careem operates to give a green signal to the $3.1 billion acquisition deal. Uber and Careem are working together to get the remaining approvals from rest of the areas of operations, including the Middle East, North Africa and Pakistan.

"Unconditional approval of this deal by the UAE government is a positive step towards the closure of the biggest technology transaction in the region," said a Careem spokesperson. "We welcome the decision and look forward to pursuing the platform opportunity and leapfrogging the region into the digital future."

Uber purchased Careem’s payment, mobility and delivery business in all of its markets including Jordan, Egypt, Pakistan, Saudi-Arabia and the UAE. This is the biggest technology transaction to happen within the region till date. The Dubai-based ride-hailing app will still be able to retain independent day to day operations under the acquisition deal, but they will no longer be rivals of Uber.

Though everything is going according to plans in terms of expansion in the MENA region, Uber is facing an uphill battle in their US market. The Chief Operating Officer Barney Harford and the Chief Marketing Officer Rebecca Messina are leaving the company. The COO position is going to be totally eliminated as well.

Mr. Dara Khosrowshahi, the Chief Executive, emailed the employees letting them know of his intentions of getting more involved in day-to-day operations. From now on, Uber Rides and Uber Eats will report directly to him.

According to The National, Uber posted a mammoth $1.01 billion loss in this year’s first quarterly financial report. In addition, their stock closed at $44.16 last Friday, which is below the IPO price of $45 per share.


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