Transport on demand is significantly rising and reaching more than 14 countries over 110 countries all across the Middle East and North Africa. The giant tech unicorn formulated in this occupancy became the MENA region. As soon as it closed funding of $500 Million it clears the company’s valuation for 1.2 Billion $. The recent revelation is made regarding the merger of Uber technology and the unicorn of Middle East ‘Careem’. Soon both of these technologies will be combining their taxi hiring services for the betterment of all.
Uber has been an inspiration lately for several entrepreneurs and startups looking to serve the same all around the world. These platforms are even looking for mobile app development companies to develop potential applications. It was instructed in the year 2009 and achieved major success scoring more than 70 countries around the world. It is justified to say that Uber is the king of all the taxi-hailing services available. This merger is in current talks at present and it was confirmed from the ministry of the United Arab Emirates that it will happen soon. The dynamics of these two have occupied the best of it in the finance industry as well.
The merger of Uber Careem
In spite of his success in other countries, Uber is constantly facing losses in the Middle East and Southeast Asian countries. One such instance was in China where the local taxi-hailing service named Didi raised major competition for Uber. The result was, Uber sold its services to its rival Careem. This deal is expected to make a revolution in mobile app development companies. This merger will result in outcomes like-
1) Careem will become a whole new substitute for Uber and will operate as solitary under the same brand led by the founders of Careem
2) Both of these companies will expand their capital and occupancy over the regions
3) They will strengthen the under penetrated opportunities of mobile app development companies
4) It will offer its assistance in the growth of the digital economy, as well as an irreplaceable place will be given to it in the finance industry.
Didi which is a local service is a major competitor of Careem and Uber and has never let them ruled the market. Uber is also constantly facing strong challenges from Didi in the US and Brazil.
Careem has the strength and support of a large number of drivers community and it was the first venture to cross the mark of 1 billion. In a nutshell, it is considered is the largest taxi-hailing service in the areas of the Middle East. It is speculated that considering the competition over can either beat it or join hands by closing the deal.
This deal will give Uber the authority to acquire mobility and business payments all across the Middle East region soon after the acquisition. Uber is the king of taxi markets and has acquired more than 70 countries without its disrupted taxi services.
Impact of Uber Careem deal
Careem is the platform for the Middle East region which is highly recognized and valuable. The higher price tag associated with Careem has made its unavoidable influence on the startups in the Middle East. Significantly, tech investments are quite profitable in this region. Whenever any merger takes place between large enterprises plenty of implications have their positive as well as a negative impact.
It is expected that the merger will affect a large number of opportunities for local taxi services in this region. Hence the quality of the services may also get improvised and stable. With better facilities, expectations of customers will also increase which will create pressure upon companies to deliver the best of their efficiencies. Uber has a merger with Careem which is a local taxi hiring service and there are no legal consequences.
With the rise of taxi-hailing services all across the globe custom mobile application development has expanded enormously. These are the speculations that with the merger of Uber and Careem a large number of global investors will find the investment attractive and this might leverage the situation. Most of the enterprises will type to deliver stellar outcomes regardless of the hierarchy of the economy.
Along with the positive benefits this merger has related to many negative impacts. Both of the companies have no other potential competitors there is no alignment for the service charges. It is possible that the fare increase will result in the computers of the reason to bear the brunt of the rise in the budget. Two of these companies are looking forward to streamlining their workforces and efficiencies which generates the possibility of employee layoffs.
The story concerned so far
Dubai based Careem was founded in the year 2012 and claims to have 30 million users. It has a global reach in various markets and a major reason to focus is the Middle East. Before Uber came into functioning Careem had already raised the fund of $ 770 Million. The merger of Uber and Careem came into the surface this year.
The impact of Careem is significant in the Middle East and North Africa (MENA Region). Careem is more than just a taxi-hailing or transport logistics amenity, where the Sheikh of Dubai is speculating over to kick start something unique. Recently the MENA region is exponentially growing in terms of venture capital investment and overall capital. Following the funding report of your 2018, the recorded investment made by MENA enterprises reached $893 Million.
Concluding the merger of Uber and Careem deal
This deal has drastically laid an impact upon the taxi-hailing services of the MENA region. This would offer a wide term of opportunity for local individuals to enter the business. It might be possible that these local players will offer comparatively fewer fairs as to Uber and Careem. Being an indigenous firm local service might get united against this deal. This merge is making various trademarks in the large fintech solutions as well.