The most popular ride-hailing company Careem in the Middle East was acquired by Uber the largest ride-hailing company in the world for $3.1 billion a few months ago.
The process of acquisition is still in the middle, Careem’s CFO said on Tuesday that Careem will remain the separate entity from Uber at least until the first quarter of 2020 when Uber’s acquisition is expected to close.
According to the details, the acquisition will not affect Careem’s brand, it will remain the wholly owned subsidiary of Uber and keep operating under the same brand, app, and systems at least in the beginning. Ankur Shah during a financial conference in Dubai said running two separate brands in the same market is better for competition. Uber is not expected to change the app, brand name, and systems of Careem in the near future, as the statements indicate. Careem is already a successful brand in the Middle East, changing its name, app or operations could result in a disaster for the company itself.