CAIRO (Reuters) – the Egyptian authorities have adopted the Uber cars (which the UBER.(N) $3.1 billion acquisition of regional rival Careem, after agreeing to a series of commitments by the united states, on the basis of the road-from the service is intended to reduce the chances of harm to competition.
FILE PHOTO: An UBER bus that goes to Egypt fans in a soccer stadium for a match against Sweden. REUTERS/Amr Abdallah Dalsh
The Careem’s acquisition was announced in March, after nine months of stop-start talks between the two companies, and that they, the Uber is a much-needed victory after a string of overseas disposals.
The deal is expected to close in January, subject to approval in several areas of Egypt, it is one of the most important ones. Egypt, with a thriving population, having regard to the swelling of up to 100 million euros, is the largest in the Middle East for the ridehailing services.
Careem will be a wholly-owned subsidiary of Uber, but will continue to operate as an independent brand with an independent board of directors.
“We are pleased with the decision of the Egyptian competition authority (ECA) for the approval of Uber, in anticipation of the acquisition of Careem,” said a spokesman for Uber said. “Uber and Careem are the forces that will deliver exceptional results and for the riders, drivers and cities in the world.”
Below are a series of obligations, Uber has made to the AGENCY, the San Francisco-based company has agreed to, and the exclusivity provisions, the partners and brokers, and to lower the barriers to entry in the market.
An independent monitoring trustee will be nominated by a Uber to and approved by the AGENCY to ensure compliance with the commitments. Uber to share a sampling of the data to the trustee on a monthly basis to comply with.
The obligations that must be met for the next five years from the date of the transaction, or when one or more of the ride-hailing providers to reach 20% of our journeys, individually and 30% collectively in the overlapping areas, with the exception of Cairo and Alexandria, Egypt’s major towns and cities.
Excluding the surge in prices and / or promotions, Uber will cap its annual increases in the fee beyond the inflationary costs of 10% for Uber X and Careem the most popular services in the world.
The increase in prices, as a mechanism to increase prices if the demand is much greater than the supply, you will also have to be capped to the Uber of X, and Careem are GOING to be 2.5 times. The variation in the rates that will be applied, up to a maximum of 30% of the annual trips on the two services.
Reporting Yousef, Saba; Editing by Nadine Awadalla and David Holmes