With the announcement, Egypt has now become the third country to approve this deal with the United Arab Emirates and Jordan being the first two. Qatar is the only country that has blocked the deal so far.
The approval by ECA, even though it comes with some conditions, is a big win for both Uber and Careem as the authority has been one of the most vocal critics of the merger between these two companies.
“ECA has imposed commitments on Uber, which will safeguard the rights of riders, drivers, and investors, as well as encourage innovation and entry into the market,” the Egyptian competition watchdog said in a statement.
Both Uber and Careem according to the statement will have to comply with a cap placed by ECA if they want to increase the fares. The cap, ECA, said is lower than the increase rate prior to the transaction. ECA has also capped the surge (or peak pricing) at 2.5 and its occurrence at 30 percent of the annual trips, with the authority reserving the right to intervene and lower the threshold at any point.
“In order to ensure low prices, the parties should maintain driver utilization rate within a 60-80% range. Commitments regarding safety and quality, placed in addition to the existing ride-sharing laws, will ensure that the quality of vehicles is checked more regularly. Commitments relating to innovation will ensure that new safety features will be added to the Egyptian market,” the statement added.
The statement does not point out but the executive summary of assessment and commitments by ECA explains that almost all the commitments to safeguard consumer interest are for Uber X and Careem Go car types.
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