The Competition Commission of Pakistan (CCP) has decided to initiate a phase II review of the international merger of Uber and Careem in Pakistan.
This is a major development in Uber-Careem’s merger. The phase II review will determine if the merger would have any deliberate or indeliberate effect on or cause problems for their competition in the market.
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The CCP rarely initiates second phase reviews because they are very complex, extensive, and time-intensive. Also, they are only opened when the first phase review cannot conclude the competition effects of a merger.
CCP is legally empowered to slap restrictions on the merger before approval. Uber and Careem had made a joint application to the CCP for approval in the first phase of the review. The merger is likely to be delayed in the wake of the opening of the second phase review.
Ride sharing is a designated industry paying reduces sales tax and with 2 dominant players Careem and Uber. This acquisition should absolutely not be allowed to proceed.
If they are allowed to merge, the competition will end so they shouldn’t be allowed
Careem already pops up messages of increased fare of 1.2 or 1.4 since this merger has happened. This merger will kill competition and customer will be paying way more. there is no other player in this space.