With operations in more than 80 cities across nine countries, the Careem super app runs a digitally native platform with various integrated consumer centric digital services, including pay, bike, delivery, groceries, food, and additional third-party services
E& to acquire 50.03% stake in Careem super-app from Uber. (Credit: Gerd Altmann from Pixabay)
Uber Technologies has agreed to sell a stake of 50.03% in the Careem super-app business to UAE-based Emirates Telecommunication Group (e&) for an investment of $400m in the app.
As part of the transaction, Careem’s ride hailing business will be spun out from Careem super app and will become wholly-owned by Uber. It will continue to remain a significant part of the Careem super app, stated e&.
The Careem super app is expected to continue providing Careem Rides to customers along with the super app services.
Uber closed the $3.1bn acquisition of Careem in early 2020. The American ride-hailing company acquired Careem’s mobility, delivery, and payments businesses throughout the greater Middle East region.
With operations in more than 80 cities across nine countries, the Careem super app runs a digitally native platform with various integrated consumer centric digital services, including pay, bike, delivery, food, groceries, and additional third-party services.
By leveraging the Careem super app, e& intends to bolster the expansion of its consumer digital services, including accelerating the expansion of e& money across a broader footprint.
Besides, the telecom company aims to expedite the growth of Careem and the development of a regional super app champion.
Following the transaction, the Careem super app will be managed by its original founders Mudassir Sheikha and Magnus Olsson.
Sheikha, in a letter to Careem colleagues, wrote: “This investment will turbo-charge our Super App vision and restart our entrepreneurial journey to build the preeminent technology platform of our region. In Uber and e&, we now have two exceptional partners to help us get there.”
The closing of the deal is conditional on regulatory approvals, customary conditions, and administrative procedures.