Surprise surprise, Careem acquired by its one global competitor, Uber... but what does this mean for Jordan?

This must be the least surprising acquisition in history for those in the know, but it's knock-on effects are pertinent on the local/regional innovation ecosystem. We have seen the positive waves of big news acquisitions time and again in Jordan; the Maktoob acquisition kick-started a revolution in the local VC industry, and the Umnia acqusition brought about renewed appetite for telecom investment. Congratulations for Careem, no doubt champions for pushing forward despite a terrible business environment that actively tried to kill them at each turn... though I do harbor mixed feelings on this.

First of all, the good. As per normal, along with and because of the buzz, and there will be improved access to capital. But more importantly, there will be vindication for those, myself included, that advocate for a "beyond dividends" strategy when it comes to start-ups. The unhealthy investor/analyst obsession with monetization through daily operations should, once again, subside in favor of viewing the asset itself as the product and not the vehicle. I remember when the Careem "unicamel" first hit the headlines through its Billion USD valuation; more than one analyst voiced distrust in the fact that there is clearly an accumulation of market valuation but no cash and little prospect of such in the foreseeable future. This acquisition, mostly in cold hard cash, should satisfy even the most hardened skeptic. 

And now for the not so good. It is worrying that, so many years after the Maktoob Group acquisition we have not yet found a way to localize a larger portion of the innovation value chain locally or regionally. For better perspective, consider that acquisition is neither surprising nor revolutionary and should already be seen as "business as usual". Though deals remain numbered, the trailblazers have already established a clear business model through Talabaat, Souq, and others. Other players will no doubt be nearing a similar bonanza with my figurative money on MadfooatCom, 2 to 4 years and maybe sooner after today's news and if our useful parliament could kindly step out of the way please, thank you.

Is this really the only model? Selling our valuable commercial assets/operations to multinationals with little or no natural incentive to keep/grow these operations locally? We must realize that Careem could not have been a Jordanian domicile startup without severely harming its prospects. We must also appreciate the harm that sporadic, inconsistent, and reactionary Jordanian regulatory oversight has, no doubt, pushed Careem, and others, to sightly more welcoming business environments including UAE, KSA, and Egypt (yes, foreign currency and transfer controlling Egypt!). These same impediments will no doubt push the newly acquired, now internationalized, entities outside of Jordan, keeping a small commercial office, if that.

It pains me to say that, though we constantly advocate regulatory reform in favor of startups and risk capital, what we actually need to ensure national wealth creation through our successful innovations runs much deeper. Our national vision that should push the creation and amendment of local regulations, as well as the process of regulatory development itself, are in dire need of alignment and modernization. Without this, we will end up with a quasi market dynamic that looks as depressingly like the real market of the 2000s; selling assets for foreign cash with little or no sustainable macroeconomic gain.

Once again, we have an enterprise success story to be proud of.. can we now build upon this a socioeconomic success story for our selves and our children?