Following the deal’s unsettling controversy, Jordan’s Minister of Industry, Trade and Supply releases a statement in favour of the acquisition.
Jordan’s Minister of Industry, Trade and Supply Tariq Hammouri has cleared Uber’s pending acquisition of Careem following a thorough review by the competition directorate.
The statement covers all necessary parts of the acquisition deal, discussing the deal’s overview and proving how the startups coming together to complement each other’s strength provides a greater benefit. The deal combines Uber’s global leadership position and technical expertise with Careem’s ability to develop outstandingly innovative solutions for the local market. Uber and Careem are pursuing this deal as part of their mission to deliver the best value to both riders and drivers in a fiercely competitive market, which is only going to get more dynamic as more similarly innovative competitors always on the horizon.
The statement also features a list of benefits that both startups can leverage to turn this deal into even more of a gold mine. The benefits include the ability to expand and develop technologies that are essential to the startups’ mission, such as combining mapping technology to create a more accurate and efficient pick-up and drop-off experience, which is especially important for low-cost, high-capacity services like UberBus.
“We welcome the decision by his Excellency Dr. Tariq Mohammad Hammouri, Jordan’s Minister of Industry, Trade and Supply, to clear Uber’s pending acquisition of Careem following a review by the Competition Directorate. Uber and Careem joining forces will deliver exceptional outcome for rides, drivers, and cities, in this fast-moving part of the world,” says a spokesperson for Uber.
The Middle East and Northern African region had already been seeing the economic growth and social empowerment of rapid technology adoption in transportation. The deal will allow for both entities to push forward towards driving growth and productivity, by further increasing the efficiency of the region’s transportation networks, as well as connecting regional talent to more job opportunities.
Since the acquisition announcement was released, some countries in the region supported the decision, with the UAE being the first to approve of the deal. Other countries like Sudan where Careem and Uber stopped operating and relied on local ride-hailing apps as a replacement, and Qatar who refused the deal and blocked the acquisition from taking place in the nation. Authority officials in Saudi Arabia and Egypt have previously expressed their concern regarding the deal, with the help of anti-trust agencies, to discuss and review the deal's details. However, no response or feedback was received since, making it difficult to decipher the future of the deal in the region.
With this recent development and positive feedback, Jordan positions itself in a prominent place in today’s tech market by approving the deal, representing a large and long-term investment pumped into the country’s economy, and further promoting its globally visible investment ecosystem, its openness to innovative and its ability to diversify beyond the basic means of foreign investment.
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