Egypt government has approved the acquisition of ride-hailing company Careem Inc by Uber. The acquisition deal though signed in March, got the government approval after providing a long list of guidelines.
Uber acquired the Dubai-based ride-hailing company Careem in March for $3.1 billion. The acquisition made Uber the sole owner of all Careem businesses and rides everywhere.
Uber, however, faced challenges in taking over the Careem business in Egypt due to the lack of government approval.
See Also: Uber to Acquire Careem in $3.1 Billion Deal
The approval, nevertheless, has been granted after the Egypt Competition Authority studied data of about 270 million trips by ride-hailing startups in the country.
The guidelines are as follows;
- A standard pricing formula that cannot go above the Egypt Competition Authority Cap price.
- Surge pricing in situations of increased demands will be limited to 2.5 times the normal trip cost.
- There won’t be an increase in the commission paid to drivers beyond the current rates.
- Also, new competitors will get access to Uber’s mapping and trip data. They will also be able to get User data from Uber-Careem application having obtained the user’s consent.
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