Crux: Careem, the Middle East-based ride-hailing company, which is owned by Uber, plans to reinvent itself as Careem Technologies after securing a $400 million investment.
UAE’s telco giant e&, formerly known as Etisalat, has announced the acquisition of a 50% stake worth $400 million in the Careem super app after signing an agreement with Uber and its regional subsidiary, Careem.
“e& is investing $400m to become a majority shareholder in Careem’s Super App alongside Uber and all three of Careem’s co-founders” the UAE tech giant announced. Uber, which acquired Careem in 2019 for $3.1 billion, will remain a shareholder in the new entity along with all three of Careem’s co-founders.
Careem was founded in 2012 as a ride-hailing rival to Uber. Its super app currently offers a range of services from food and grocery delivery to fintech services. With this new investment, Careem plans to create the first “everything app” serving customers across the Middle East.
“The Careem Super App is a digital native that has built a rapidly growing payments, food and grocery delivery network, and a platform for other digital businesses to scale from. The shared vision between e& and Careem is exciting, we believe that together we’ll be able to enhance our impact across different markets in the region,” said Hatem Dowidar, e& Group CEO.
Uber CEO Dara Khosrowshahi welcomed e& to grow the Careem super app to deliver more services to millions of people. “Over the last decade, Careem helped revolutionize mobility across the greater Middle East while building an incredible brand … All of us at Uber are excited about the impact the Careem platform will have on this region over the next decade and beyond.”
Following the latest deal, Careem will operate as two companies — Careem Rides and Careem Technologies.
Careem Technologies: The “Super App” will be owned jointly by e&, Uber, and Careem’s co-founders Mudassir Sheikha and Magnus Olsson. Led by Sheikha, this unit will have about 1,400 employees.
Careem Rides: The ride-hailing business will be separated from the Careem super app and will be fully owned by Uber. It will be staffed by 260 people.
In a blog post, Careem CEO Sheikha said the $400 million funding will be used to “scale the Super App and build category-leading verticals in all our key markets.”
“With two strong partners in e& and Uber, I have no doubt that we will build the preeminent technology platform of the region”, Sheikha said, adding that “The opportunity to use technology to leapfrog the lives of people in the region is enormous”.
Today is a big moment for @careem and inshallah an exciting inflection point for the region’s digital economy. It’s day one of Careem’s Chapter 3 as we welcome e& as a new partner on our journey to become the first “everything app” in the greater Middle East. With two amazing… https://t.co/41eOSg7AO8
— Mudassir Sheikha (@MudassirSheikha) April 10, 2023