Uber
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Uber Expands Its Presence in The Middle East

Uber recently announced that it is acquiring ride-hailing company Careem.  Careem is an established company that operates in 15 countries and 120 cities in the Middle East.  This acquisition illustrates Uber’s approach to grow internationally and in new markets, says Gaurav Mohindra.

Uber announced the acquisition through a press release on March 26, 2019.  The transaction is expected to close in early 2020 subject to appropriate regulatory approvals.  Uber is acquiring Careem for $3.1 Billion.  The payment consists of $1.7 Billion in convertible notes and $1.4 Billion in cash.  Careem was founded in 2012 and quickly saw success as the ride-hailing economy expanded across the region.

It is anticipated that Careem will continue to use its brand and name in the region.  It is not unusual for acquired companies to become wholly-owned subsidiaries.  Careem is a recognized brand in its market and can continue to leverage the goodwill it has built over the years, says Gaurav Mohindra from Chicago, Illinois.  Careem CEO and co-founder, Mudassir Sheikha, will continue to lead Careem’s business.

It is not surprising that Uber entered into this transaction.  Uber is poised for an IPO soon and is continuing to expand its services offerings globally.  It would take Uber considerable time, effort, and cost to organically capture new regions.  When a company, such as Uber, seeks to grow quickly – acquisition is an attractive option.  In addition, Uber is a well-funded company and their access to capital provides acquisition as a good growth strategy.

Careem’s service offerings include mobility, delivery, and payments.  Their regional breadth ranges from Morocco to Pakistan, and major markets include Egypt, Jordan, Pakistan, Saudi Arabia, and the UAE. 

Uber’s presence in the region will expand the digital services Careem currently offers. 

Uber was founded in 2010, and its upcoming IPO is eagerly anticipated.  Uber’s growth over the past 9 years is simply amazing.  Uber has conducted over 10 billion trips since the company was founded, and has simply changed the way people move. 

It’s exciting to see Uber grow into new markets and provide new service offerings.  As Uber continues to grow, it would be anticipated that other acquisition similar to this one will take place.  Uber may continue to acquire regional players to expand their presence in new markets, but also acquire companies having new services than they currently offer.  As Uber’s infrastructure continues to improve, consumers will yield the benefit of having a seamless experience.

Uber-Freight
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Uber Launches Uber Freight in Europe

Uber announced the launch of Uber Freight in Europe today highlighting its entry into the 3rdlargest marketplace for global logistics.  This news reinforces Uber’s commitment into the trucking market, which it entered in the US market over 2 years ago.

“Uber provides transparency and a much-needed level playing field in global logistics”, says Gaurav Mohindra, an attorney working with emerging technologies.  “Currently, there are vast inefficiencies within the marketplace resulting in empty transit which impacts bottom lines and timelines.”

Ubers foray into Europe further illustrates its commitment for global reach.  Having successfully expanded it rideshare and private car business into new territories, it’s refreshing to see the company capitalize and expand its international footprint.

Last week, Uber competitor Lyft received much attention with its IPO on the NASDAQ stock exchange. Post IPO, Lyft had a valuation of around $24 billion USD.  “Lyft’s IPO and value creation clearly shows the interest the market has for emerging technologies.  Uber is widely considered the leader in this space and there is anticipated support for their IPO as well”, continued Gaurav Mohindra.

From Uber’s press release, they state that Uber Freight is transforming the trucking industry by enabling carriers and their drivers to push a button and book a load at an upfront price instead of wasting hours or even days negotiating their work on the phone. Uber’s global experience of rapidly building and optimizing transportation networks unlocks value for everyone involved.  Similar to Uber, Lyft also provides an expanded business offering asides from its personal ride sharing service.  Lyft business includes healthcare and corporate solutions as well.  “Seeing Uber’s success in the freight logistics marketplace, one can assume the Lyft will expand its reach in this marketplace as well”, says Gaurav Mohindra.

According to the American Trucking Association, trucks move around 71% freight by weight in the US.  US Trucking accounts for nearly $738.9 Billion in revenue, over 10 billion tons of freight were transported in 2016, and roughly 11 million people were employed in trucking related activity in 2015. With such a large marketplace, it’s not surprising that mobility companies are positioning to capture this market.  Like other industries, it will be interesting to see how traditional trucking and logistics companies position themselves to compete with the new market entrants.

With the new market entrants, carriers and shippers are likely the ones to gain most as they can maximize their value with the emerging technologies.  It will be interesting to see how this unfolds over time.

Originally Posted:
https://www.allperfectstories.com/uber-launches-uber-freight-in-europe/

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