Careem. The name of the word means “generous.” Yes, the USD 3.1 billion price tag that the then arch-rival of Careem, Uber, paid to wipe their Middle Eastern competition out of its existence.
The MENAPT region may have gained the immediate attention it lacked from the international annals of startup ecosystems. In the long-term game, though, it was a shortsighted decision on the part of Careem’s investors and management team.
Careem made the competition between the then rivals of the middle-eastern ride-sharing market a “narrative of East vs West.” Careem and Uber’s clash was more than two ride-sharing giants in their markets. Careem weaved its culture, tradition, and values into its brand; Uber’s ruthlessness in the market globally is what made Uber into the giant that it is today.
In regional annals of commerce, there is a consensus that Careem could fetch a commercial valuation of between $5B-$10B. Careem could’ve conducted an IPO in the regional markets, which would’ve created even more economic activity for its investors, founders, and employees who held shares in the company.
Why did Uber acquire Careem? Careem was beating Uber at every turn in the MENAPT market. Careem’s content, marketing, and advertising kept it well ahead of the curve.
Dubai’s flurry of startups has shown that the city does not have a startup problem; instead, it has a scale-up problem. The city still has a long way to go; it is starting, scaling, and retaining big startups in the region.
