Uber Rivals in Dubai and China Form Alliance to Compete

Credit: skift.com

Careem Inc.

Careem Inc. in Dubai has team with Yidao Yongchie in China to get some scale to compete on a global basis. Careem Inc.

Skift Take: While Uber is facing its own internal struggles, rivals are teaming up in China and Dubai although Yidao in China confronts problems of its own. There will be a ton of maneuvering around the world before the pecking order is really established.

— Dennis Schaal

Uber Technologies Inc. is facing another alliance of rivals as smaller operators team up across different regions for ride hailing services.

Careem Inc., a Dubai-based service that’s valued at about $1 billion, 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.

Uber has been able to build leadership in ride-hailing with a single app that customers can use to get a ride around the world. Splyt is trying to negate that edge and Chief Executive Officer Philipp Mintchin said his company’s technology connects with partners to help clients see available cars when they land. Splyt holds local bank accounts in regional currencies and makes its money by charging a commission on the currency exchange.

Splyt’s nascent effort resembles another recent alliance of much larger ride-sharing companies. In late 2015, Didi, Lyft Inc., Southeast Asia’s Grab and Ola of India forged a four-way partnership to take on Uber.

Uber’s international expansion was last year dealt a blow when it sold its Chinese operation to Apple Inc.-backed Didi after spending billions of dollars to build its business in the country.

The alliance with Careem comes as Yidao, which is associated with Chinese billionaire Jia Yueting, faces local media reports that it’s struggling to pay suppliers. The company denied those claims in a statement and said its business is running smoothly and preparing for an initial public offering.

Mintchin said around 3.5 million cars on seven services in the Middle East, China, South America, France, Poland, Belgium and Nigeria were currently linked by the platform. Partners in Russia and Japan are expected to come on board within the next six months.


©2017 Bloomberg L.P.

This article was written by Bloomberg News from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Top Stories

Momondo Group Is Still Spending Big to Fund Expansion

The Momondo Group knows it has to spend big to catch up with the competition. Its growth caught the attention of the Priceline Group, which will be hoping the acquisition, if approved by regulators, will help boost its European metasearch operation. -Patrick Whyte
  • 3 days ago
  • 14

TripAdvisor Instant Booking Gets Very Personal

TripAdvisor is getting more sophisticated about prodding customers to book hotels on TripAdvisor or to more effectively refer them to partner sites. In an apparently modified strategy, TripAdvisor is finding religion in being agnostic about where its users book hotels. -Dennis Schaal
  • 2 days ago
  • 12

Freddie Awards Pick the Year’s Best Traveler Loyalty Programs

Can 4.2 million flyers be wrong? Well, none of them have yet lost status in a U.S. airline program because of recent changes. So maybe some don't realize what's coming. -Sean O'Neill
  • 1 day ago
  • 11

Seasonal Work Visa Caps Could Hurt U.S. Vacation Destinations

Can the U.S. tourism economy afford to lose access to temporary workers? We'll soon find out. -Deanna Ting
  • 4 days ago
  • 11

Disastrous Fyre Festival in Bahamas Shows Event-Planning Isn’t for Amateurs

If you promote it, they will come. But you DO have to build it, and the Fyre Festival obviously didn't. -Dennis Schaal
  • 7 hours ago
  • 11
farawayyachtingcharters - Easy Branches
botoxfillerveintheraphyinphuket - Easy Branches

Latest in Travel

Disastrous Fyre Festival in Bahamas Shows Event-Planning Isn’t for Amateurs

If you promote it, they will come. But you DO have to build it, and the Fyre Festival obviously didn't. -Dennis Schaal
  • 7 hours ago

Spirit Air CEO: ‘For a Very Long Period of Time We Didn’t Run a Good Airline’

Focusing on reliability and customer satisfaction is the right move for Spirit, provided it can do it without increasing costs significantly. The airline's brand is not in strong shape, and it needs to be rehabilitated. -Brian Sumers
  • 8 hours ago

Royal Caribbean Sees a China Slowdown But Other Markets Are Thriving

As cruise executives often say, having ships all over the world means some areas boom while others struggle. At the moment, China-Korea tensions are hurting Royal Caribbean's business in Asia, but other regions are strong. -Hannah Sampson
  • 9 hours ago

Etihad Lends Its Support to Air Berlin Despite Mounting Losses

For the moment shareholder Etihad is sticking by the struggling carrier. It will be hoping that Air Berlin can turn things around and not go the same way as Alitalia. -Patrick Whyte
  • 10 hours ago

Airbnb Settles Race Discrimination Complaint in California

Whatever can be done to prevent discrimination and bias on the Airbnb platform is a good thing. Let's just hope this plan works toward that goal. -Deanna Ting
  • 11 hours ago

Meetings and Events Are a Big Part of Vegas’ Latest Winning Streak

With gambling revenue in steady decline, meetings and events have become extremely important for Las Vegas resorts. -Andrew Sheivachman
  • 12 hours ago

New York’s Metropolitan Museum Considers New Fees That Would Impact Tourists

Tourists like transparency. They markedly do not like paying $100 to get their family into The Met, only to discover later that they could have paid nothing. Then again, MoMA charges a mandatory $25 and its galleries are packed, so maybe fees don't turn people off as much as we think. -Sarah Enelow
  • 14 hours ago

Flyers Shouldn’t Expect $10,000 When Bumped From a United Airlines Flight

The optics of United Airlines' revamped overbooking procedure are solid, but travelers shouldn't expect to ever receive such a big payout for giving up their seat. -Andrew Sheivachman
  • 15 hours ago

Airbnb Debuts Business Travel Search Tool

Why hasn't Airbnb rolled this out sooner? -Deanna Ting
  • 16 hours ago

Building a Mobile Path to Purchase — Digital Marketing News This Week

Many companies — especially in the hotel sector — aren't doing enough to encourage mobile purchases. -Jeremy Kressmann
  • 17 hours ago

Travelzoo Made $1.8 Million by Selling the Fly.com Domain

It appears that the mystery buyer is a brand holding company that may not be focused on travel. If so: What a lost opportunity. -Sean O'Neill
  • 18 hours ago

3 Links I Love: Let’s Buy Alitalia, American Jacks Up Pay, United Mourns JFK

This week’s featured link: Lufthansa says not interested in taking over Alitalia – Financial Express The worst airline ever continues ... Read More
  • 20 hours ago