Are Uber and Careem about to merge in the Middle East?
The two companies are reportedly in talks for a potential ride-hailing industry shakeup…
Ride-hailing apps have become part and parcel of commuter life in the UAE, with both players on the market – Silicon Valley giant Uber and local-hero Careem – offering competitive rates to customers for quick rides around town.
But it looks like there could be a shake up on the horizon as Bloomberg is reporting that the two companies are currently in talks for a potential merger in the Middle East.
The article cites three people who are familiar with the matter, outlining the ways that a merger deal might potentially go down. One option would be that Careem’s current leadership would continue to manage the new combined business while one or both of the companies would carry on as normal. Another proposal could see Uber just out-right acquiring Careem.
At this stage it’s unclear how such a merger would affect customers, but it’s safe to say that competition is always healthy and if the two companies combine forces there will be less incentive for either to drive the prices of rides down.
Of course, it could also open up space for a third player to enter the market, so who knows? We shall have to wait and see…
– For more about Dubai straight to your newsfeed, follow us on Facebook.