This archive report was first published on 10 September 2019.
On September 10, 2019, the Qatar Competition Authority made a surprise move by blocking the proposed $3.1 billion acquisition of Careem by Uber. The deal aimed to solidify Uber's position as the leading ride-hailing company in the Middle East, a crucial step towards global dominance.
Uber claims that it has not received any public explanation from the Qatar Competition Authority regarding the decision, which was made privately to the two companies. The Authority has not issued a public statement on the matter.
Despite the setback, Uber and Careem plan to seek further review of the decision. The two companies have already received approval for the deal in the United Arab Emirates, where the Minister of Economy granted approval in June 2019.
The acquisition deal has also been under review in other countries, including Egypt, Pakistan, and Saudi Arabia. In Egypt, Uber and Careem have received warnings against the merger, with the potential to face fines of about $28 million if they proceed with the merger.
Careem, initially a ride-sharing app, has evolved into a super-app offering various products, including food deliveries and payments. The company now has over 33 million customers and operates across 14 countries in the greater Middle East.
