Uber’s Acquisition of Careem Gets Egyptian Nod, With Conditions
(Bloomberg) -- Egypt signed off on Uber Technologies Inc.’s acquisition of ride-hailing peer Careem Inc. after setting price caps and other measures designed to keep the local market competitive.
The decision was made after studying data on 270 million trips as well as Egyptian and international precedents, the Egyptian Competition Authority said Sunday in a statement.
Among the commitments the authority placed:
- Any raising of passenger prices has to comply with cap imposed by the ECA
- Surge pricing, wherein rides temporarily become more expensive due to increased demand, will be limited to 2.5 times the normal trip cost
- Companies won’t increase the commission they deduct from drivers beyond current rate
- Growth of new competitors will be encouraged by allowing them access to Uber’s mapping and trip data, plus letting them obtain user data from Uber and Careem applications, after obtaining users’ consent
Uber in March announced its $3.1 billion purchase of its Dubai-based competitor Careem. Both companies have operated in Egypt since 2014, with their services in the Arab world’s most populous nation including app-hailed passenger vehicles, buses and deliveries.
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