Uber Technologies is the largest ride-sharing company. Across 81 countries the company is providing its service. Uber is growing fast and harvesting most of the profit alone in the sector while competitors are not doing well. Now, Uber competitors from Dubai and China are teaming up against Uber.
Careem and Yidao Yongche team up
Other ride-hailing companies are far behind from Uber in terms of competing in the sector. Moreover, individually any Uber competitor can barely defeat the giant. Nonetheless, a united effort may make some difference. Consequently, believing in that small, on-demand ride-hailing service providers are up to make an alliance. Companies from different regions are partnering to use their resources and capital to construct a robust foundation in the sector.
China’s Yidao Yongche and Dubai’s Careem will work together. On March 20, 2017, Bloomberg reported, “Careem Inc., a Dubai-based will partner with China’s Yidao Yongche and share resources, according to a statement. They will use London-based startup Splyt Technologies Ltd. to coordinate their fleets and payments so that passengers using one app can travel abroad to use the drivers of others without downloading new software”.
Last year Uber sold off its business in China to Didi which shrank Uber’s revenue. Additionally, teaming up with four leading ride sharing companies, Didi, Grab, Ola, and Lyft was hurting Uber’s revenue stream. As a matter of fact, such alliance is surely ominous for Uber.